Air India seeks $1.5 billion from owners Tata, Singapore Air as losses mount, sources say
Air India is seeking $1.5 billion in fresh equity from owners Tata Sons and Singapore Airlines to address record annual losses. The request comes as the airline undergoes a major transformation and faces various operational challenges.
Why it matters
The financial health of Air India is a major indicator of the stability of the Indian aviation sector and the success of the Tata Group's recent acquisition strategy.
Air India is seeking about $1.5 billion in fresh equity from its owners, Tata Sons and Singapore Airlines, months after the second-largest Indian airline posted a record annual loss, two people familiar with the matter told Reuters .
It would be one of Air India’s largest publicly reported requests for shareholder funding since Tata took control of the former state-owned carrier in 2022. It highlights the challenges facing the airline as it undergoes a multi-billion-dollar revamp, including the refurbishment of its existing fleet.
The carrier and its budget unit Air India Express posted combined losses of $2.33 billion in the fiscal year ended March, more than double the prior year’s losses. The losses have also weighed on Singapore Airlines’ profits.
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