Air India seeks Rs 12,500 crore fresh funding from owners

Air India has asked its owners Tata Sons and Singapore Airlines for about $1.5 billion (Rs 12,500 crore) in fresh equity, months after posting a record annual loss of $2.33 billion for the fiscal year ended March, sources told Reuters. The combined loss of Air India and its budget unit Air India Express more than doubled from the previous year.

The carrier wants the funds immediately, though the infusion may happen in tranches, two sources said. Singapore Airlines, which holds about 25 percent of Air India, would need to contribute its share for the investment to proceed. Discussions are ongoing and no final decision has been made. Air India and Tata Sons did not respond to requests for comment.

Tata Sons Chair N Chandrasekaran has said the turnaround could take up to a decade, citing supply-chain problems and the need to overhaul legacy systems. Chandrasekaran is due to step down in February next year. Singapore Airlines said it is working closely with Tata Sons to support Air India's transformation but declined to comment on the airline's finances.