Air India seeks $1.5 billion from Tata, Singapore Air

Air India is seeking about $1.5 billion in fresh equity from its owners Tata Sons and Singapore Airlines, months after posting a record annual loss, two sources told Reuters. The carrier and its budget unit Air India Express posted combined losses of $2.33 billion in the fiscal year ended March, more than double the previous year.

The Hindu reports the request is one of the largest publicly reported shareholder funding requests since Tata took control in 2022. Livemint adds that Air India wants the funds immediately, though infusion is likely in tranches, and Singapore Airlines must contribute its share for the investment to proceed. Discussions are ongoing with no decision taken, sources said. NDTV notes the funding request highlights challenges in the airline's multi-billion-dollar revamp.

Air India and Tata Sons did not comment. Singapore Airlines, which owns 25% of Air India, said it is working with Tata to support the transformation programme but declined to comment on finances. One source said the airline is expected to need further capital infusions in coming years.