New Delhi: Air India is reportedly seeking a financial infusion of around Rs 10,000 crore ($1.14 billion) from its parent companies, Tata Sons and Singapore Airlines, to strengthen its operations and overcome recent challenges. The proposed aid aims to support large-scale upgrades across systems, services, and the establishment of in-house engineering and maintenance units.
According to reports, the airline’s request comes amid mounting financial strain following the tragic Ahmedabad crash in June and the airspace restrictions imposed after India-Pakistan military tensions earlier this year. These disruptions have significantly impacted operations, with Air India expected to face losses of nearly Rs 4,000 crore.
Tata Sons currently holds a 74.9 percent stake in the airline, while Singapore Airlines owns the remaining share. Neither company has issued a statement on the reported funding request.
Air India’s Managing Director and CEO, Campbell Wilson, recently addressed the Ahmedabad tragedy at the ‘Aviation India 2025’ summit, stating that the Aircraft Accident Investigation Bureau’s preliminary findings cleared the airline of any operational lapses. “The interim report found no issues with our procedures or maintenance practices. However, we continue to review and enhance our systems to ensure higher safety standards,” he said.
The June 12 accident involving flight AI-171 from Ahmedabad to London resulted in the loss of 241 lives. The Boeing 787 Dreamliner crashed into a college building shortly after takeoff, with only one survivor. The AAIB’s investigation revealed that both engines lost fuel supply moments after takeoff, leading to the fatal crash.
Despite the tragedy and operational hurdles, Air India remains focused on its long-term transformation plan, which includes modernizing its fleet, digitizing key functions, and enhancing passenger experience as part of its broader post-merger restructuring under the Tata Group.
