Air India seeks over $1 billion in financial support from owners Tata Sons, Singapore Airlines: Report

By Admin

31 Oct, 2025

In a major financial development, Air India has reportedly sought ₹100 billion ($1.14 billion) in support from its owners, Tata Sons and Singapore Airlines (SIA). The request for capital infusion comes as the airline grapples with one of the worst crises in its history following a tragic plane crash in June, which claimed the lives of more than 240 passengers.

Financial Lifeline for Recovery

According to a report by Bloomberg, Air India’s management has approached its parent companies for additional funds aimed at stabilising operations and continuing its modernisation drive. The funds, if approved, would help overhaul internal systems, customer service standards, and technical infrastructure, including the development of in-house engineering and maintenance departments.

Sources revealed that any financial contribution would be made proportionate to ownership, with Tata Sons holding 74.9% and Singapore Airlines 25.1% in the airline. The two owners are currently evaluating whether the support will be structured as an interest-free loan or through equity infusion.

Tragic Air India Crash Triggers Crisis

The financial request comes in the aftermath of the June 12 Air India crash, one of the deadliest air accidents in India’s aviation history. The Boeing 787-8 Dreamliner, operating as Flight AI171 from Ahmedabad to London Gatwick, crashed shortly after takeoff, resulting in 260 fatalities, including 241 passengers and crew.

The disaster not only shocked the aviation industry but also severely impacted Air India’s reputation, complicating its ongoing efforts to rebuild under the Tata Group.

CEO’s Commitment to Safety and Reform

Speaking at a conference in Delhi, Air India CEO Campbell Wilson expressed deep sorrow over the tragedy, calling it “absolutely devastating for the people involved, their families, and the airline staff.” He assured that Air India has been doing everything possible to support those affected, including families of victims and first responders.

Wilson also confirmed that preliminary investigations found no mechanical or operational faults with the aircraft or engines. “We, like everyone else, await the final report. If there’s anything to learn from it, we will,” he stated during his first public appearance in India since the incident.

Tata Group’s Role in Air India’s Revival

Since acquiring Air India in 2022, Tata Sons, in partnership with Singapore Airlines, has been striving to restore the airline’s global standing through fleet modernisation, service quality improvement, and digital transformation initiatives. However, the recent tragedy and financial strain have tested the resilience of this revival plan.

While neither Tata Sons, Singapore Airlines, nor Air India have commented publicly on the Bloomberg report, industry experts believe that the proposed $1.14 billion lifeline could be crucial in ensuring operational continuity and rebuilding trust among passengers.

As the investigation continues and the airline works toward stability, Air India’s next phase will likely focus on safety assurance, infrastructure development, and customer confidence restoration key elements in its journey toward becoming a world-class carrier once again.

(Exchange rate: $1 = ₹87.8950)