Air India is looking for at least Rs 10,000 crore in financial help from its owners, Tata Sons and Singapore Airlines. This request comes as the airline deals with the aftermath of the June crash that killed more than 240 passengers.
This incident has led to increased scrutiny of the airline’s operations, according to Bloomberg, which cited sources familiar with the situation.
Air India request Rs 10,000 crore financial help from owners
The request arrives at a delicate time for the airline. Since Tata Group acquired Air India in 2022, it has been working to rebuild its reputation, update its ageing fleet, and improve operations. Tata Group currently owns a 74.9% stake in Air India, while Singapore Airlines holds the rest.
Planning for advanced safety, engineering and maintenance systems
The proposed funding aims to help Air India upgrade its safety, engineering, and maintenance systems. It will also speed up investments in staff training, cabin improvements, and operational technology. The details of the funding are still being discussed. It may come as an interest-free loan or new equity based on ownership percentage.
Singapore Airlines said in an email to Reuters that it has been collaborating with Tata Sons to support Air India’s ongoing transformation. This includes offering operational expertise.
The June crash, which was the deadliest in India in over a decade, and impacts their recovery plans. Investigators are looking into both technical and procedural issues. The incident has increased regulatory scrutiny regarding maintenance standards and pilot training at the airline.
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