Air India has approached its parent company Tata Sons and its joint venture partner Singapore Airlines (SIA) for a financial infusion of around ₹10,000 crore as the carrier looks to stabilize operations and strengthen its engineering and safety infrastructure in the aftermath of a fatal crash earlier this year.
According to reports citing people familiar with the matter, the airline has sought the fresh capital support to accelerate ongoing modernization and safety upgrades, overhaul internal systems, and enhance maintenance capabilities.
The request follows the tragic June 2025 crash that killed over 240 people, the deadliest air disaster in India in more than a decade.
The incident has intensified scrutiny from regulators and prompted the carrier to re-evaluate its operating procedures and fleet management standards.
The proposed funding could come in the form of a mix of equity infusion and interest-free loans.
Tata Sons, which holds a 74.9 percent stake in Air India, and Singapore Airlines, which owns the remainder, are currently evaluating the request.
The funds are expected to be channeled toward critical areas such as safety infrastructure, crew training, fleet maintenance, and passenger service improvements.
The move comes amid Air India’s larger restructuring efforts under Tata Sons, which took control of the carrier from the Indian government in January 2022.
The company has since embarked on an ambitious five-year transformation plan called “Vihaan.AI,” aimed at restoring profitability, modernizing its fleet, and reclaiming market leadership on international and domestic routes.
As part of this strategy, Air India has placed record aircraft orders with Airbus and Boeing and initiated the merger of its full-service arm Vistara into its mainline operations.
The merger, expected to be completed in 2025, is designed to create a unified premium airline capable of competing with global peers.
However, the June 2025 crash and subsequent investigations have set back some of these plans. Regulators have directed the airline to implement several corrective measures, including enhanced maintenance checks, stricter pilot training, and independent audits of engineering systems.
The additional funding from Tata Sons and SIA is intended to accelerate compliance and rebuild confidence among passengers and regulators alike.
Industry observers say that despite the heavy investments already made by Tata Sons and SIA — estimated at more than ₹9,500 crore in the previous fiscal year — the latest request underscores the scale of challenges confronting the airline.
Analysts note that the crash has disrupted Air India’s financial trajectory, forcing a renewed focus on operational safety and reliability before the carrier can push ahead with its expansion agenda.
Neither Air India nor its parent companies have publicly commented on the fresh capital request.
Singapore Airlines, however, has confirmed that it continues to work closely with Tata Sons on Air India’s turnaround plan and remains committed to its long-term partnership in India.
The proposed lifeline could prove critical for Air India at a time when competition in the Indian aviation market is intensifying. Rivals such as IndiGo, Akasa Air, and the soon-to-launch Tata-owned low-cost subsidiary are rapidly expanding their fleets and route networks.
For Air India, the infusion would provide much-needed liquidity to strengthen its technical operations and reaffirm its commitment to safety, service quality, and modernization.
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