Air India seeks $1.14 billion in financial support from owners Tata Sons, Singapore Airlines: Report

Air India is seeking financial support of at least 100 billion rupees ($1.14 billion) from the owners of Singapore Airlines and Tata Sons, Bloomberg News reported on Thursday, citing sources familiar with the matter.

The development follows Air India’s fatal crash in June that killed more than 240 passengers, plunging the carrier into its worst crisis and complicating efforts to restore its reputation and modernize its fleet.

The Tata Group-owned carrier has sought funds to overhaul Air India’s systems and services as well as improve its in-house engineering and maintenance departments, the report said.

Any financial support will be proportional to ownership, Bloomberg said, adding that owners will decide whether the financing will be through an interest-free loan or equity.

Tata Group, which acquired Air India in 2022, owns 74.9% of the airline, while Singapore Airlines holds the rest.

Reuters We were not able to immediately confirm the report. Air India, Singapore Airlines and Tata Sons did not immediately respond to Reuters requests for comment.

Earlier this week, Air India’s CEO promised to improve the airline’s internal practices.

($1 = 87.8950 Indian rupees)

(With input from Bloomberg)