Air India has requested approximately $1.5 billion in new funding from its owners amid mounting losses, supply chain issues, and geopolitical disruptions, signalling the challenges in its ongoing overhaul.
Air India is seeking about $1.5 billion in fresh equity from its owners, Tata Sons and Singapore Airlines, according to Reuters, in a move that underlines how expensive and difficult the carrier’s overhaul has become. The request follows a record annual loss and comes as the airline continues to grapple with fleet upgrades, service improvements and the wider cost of rebuilding a large legacy carrier.
The airline and its budget arm, Air India Express, posted combined losses of $2.33 billion in the year to March, more than double the previous year’s figure, Reuters reported. That makes the funding call one of the largest publicly reported shareholder requests since Tata regained control of the former state-owned airline in 2022. Singapore Airlines, which owns about a quarter of Air India, has said it is working with Tata Sons on the carrier’s transformation, but has declined to discuss its finances.
The timing adds to the pressure. Air India has been affected by Pakistan’s airspace restrictions on Indian carriers, disruption to international operations linked to the US-Israel war with Iran, and the aftermath of last year’s fatal crash that killed 260 people. Reuters also reported earlier this year that the airline had sought to push back deliveries of hundreds of jets from Airbus and Boeing as Tata pushed for lower costs and smaller losses.
The request also lands as Tata Sons chairman N. Chandrasekaran prepares to step down in February after months of tensions with the group’s controlling charitable trust, including disagreements over Air India’s losses, according to Reuters. Chandrasekaran has said the turnaround could take as long as a decade, citing supply-chain problems and the need to replace old systems, culture and aircraft. One source told Reuters that Air India would keep needing capital injections in the years ahead.
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