Air India Seeks Funding From Owners After Crash
Air India has approached its owners — Tata Sons (74.9 % stake) and Singapore Airlines (25.1 %) — seeking approximately ₹10,000 crore (around US $1.14 billion) in fresh funding according to Bloomberg News, . The request follows the June crash of its Boeing 787 on the Ahmedabad–London route and ongoing operational and financial challenges.
Purpose and Ownership Breakdown
The funds are intended to upgrade systems, improve safety infrastructure and establish in-house engineering and maintenance capabilities. Contributions from Tata Sons and Singapore Airlines are expected to align with their respective ownership stakes. The form of assistance — whether interest-free loan or equity injection — remains under discussion.
Strategic Implications
The funding appeal underscores the precarious state of Air India’s turnaround plan and the urgency to restore confidence after one of the worst aviation incidents in India’s history. The request arrives amid a tightening aviation market, rising fuel costs and regulatory scrutiny. For the parent companies, approving such a sizable infusion will test their long-term commitment to the carrier’s revival.
