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 highlights the challenges facing the airline as it undergoes a multi-billion-dollar revamp, including the refurbishment of its existing fleet. 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.
“Air India wants the funds immediately, though the infusion is likely to happen in tranches. Discussions are ongoing and no decision has been taken on the request, they added, declining to be named as they were not authorised to discuss the matter publicly. Its funding request comes as Tata Sons Chair N. Chandrasekaran prepares to step down in February following months of disagreements with the group’s controlling charitable trust, partly over Air India’s losses.
Singapore Airlines would need to contribute its share of the proposed infusion for the investment to go through,” one of the sources said. It is seeking the funding in the form of fresh equity, the two people said.
“Air India is expected to continue requiring capital infusions in the coming years,” one of the sources added.
