NEW DELHI: Air India is seeking about US$1.5 billion in fresh equity from its owners Tata Sons and Singapore Airlines (SIA), months after the second-largest Indian airline posted a record annual loss, two people familiar with the matter told Reuters.
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. It highlights the challenges facing the airline as it undergoes a multi-billion-dollar revamp, including the refurbishment of its existing fleet.
The carrier and its budget unit Air India Express posted combined losses of US$2.33 billion in the fiscal year ended March, more than double the prior year’s losses. The losses have also weighed on SIA’s profits.
“Air India wants the funds immediately, though the infusion is likely to happen in tranches. SIA 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. 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.
Air India and Tata Sons did not respond to Reuters requests for comment.
Singapore Airlines, which owns around 25 per cent of Air India, said it was working closely with Tata Sons to support Air India’s transformation programme, but declined to comment on the airline’s finances.
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