Months after the tragic Ahmedabad plane crash that killed over 240 people, Air India has requested Rs 10,000 crore ($1.1 billion) in financial assistance from its owners, Tata Sons and Singapore Airlines, according to Bloomberg.
The airline has sought these funds to upgrade systems and services and to build in-house engineering and maintenance units.
Air India Seeks ₹10,000 Crore Aid from Tata Sons and Singapore Airlines After Ahmedabad Plane Crash
Air India’s financial situation has deteriorated in recent months, making it difficult for the company to achieve its goal of breaking even by March 2026.
The airline is jointly owned by Tata Sons (74.9%) and Singapore Airlines (25.1%).
Any financial support is expected to be split according to ownership stakes and may come either as an interest-free loan or a fresh equity infusion.
India’s aviation industry is currently highly competitive, with most airlines facing growing financial losses.
IndiGo, operated by InterGlobe Aviation, is the only profitable carrier in the market, controlling over 64% of the market share.
Air India’s turnaround strategy has faced multiple setbacks throughout the year.
Setbacks Faced By Air India’s Turnaround Efforts This Year
In May, the airline had to operate longer non-stop west-bound flights due to airspace restrictions following a military standoff between India and Pakistan.
These restrictions came after Operation Sindoor, India’s pre-emptive military strike on terror camps in Pakistan and Pakistan-occupied Kashmir in April.
The strike followed a terror attack in Pahalgam that killed 26 people, most of them tourists.
As a result of the airspace closure, fuel and operational costs for Air India increased significantly.
The situation worsened further after the Ahmedabad plane crash on June 12, when a Boeing 787 Dreamliner bound for London crashed shortly after take-off, killing all but one passenger.
Following the crash, the Directorate General of Civil Aviation (DGCA) ordered a comprehensive safety audit of Air India’s operations.
In response, the airline reduced its international widebody services by 15% between June and August, which led to further revenue decline.
Earlier this week, Air India CEO Campbell Wilson announced that the airline expects to lose around Rs 4,000 crore this year, mainly because of Pakistan’s airspace restrictions.
“While there are many uncertainties affecting travel demand, they cannot derail our long-term plans,” said Campbell Wilson.
The funding request underscores the growing difficulty for Air India to remain competitive, even with Tata Group’s ownership and Singapore Airlines’ partnership.
