Air India Seeks Rs 10,000 Crore Lifeline from Tata and Singapore Airlines
Air India is reportedly seeking at least Rs 10,000 crore ($1.14 billion) in financial support from its owners, Tata Sons and Singapore Airlines, following a deadly crash in June. The funds are intended to overhaul the airline's systems, services, and engineering capabilities. The decision on whether the support will be provided as a loan or equity will be proportional to ownership stakes.
Air India has requested at least Rs 10,000 crore ($1.14 billion) in financial assistance from its owners, Tata Sons and Singapore Airlines, as it faces a severe crisis after a fatal crash in June that killed over 240 passengers. The airline aims to use the funds to overhaul its systems, services, and to develop in-house engineering and maintenance departments. The financial support will be proportional to the ownership stakes, with Tata Sons holding 74.9% and Singapore Airlines the remainder. The owners will decide whether the funding will be provided as an interest-free loan or through equity. This request comes as Air India struggles to restore its reputation and modernize its fleet following the tragic incident. The airline's CEO has recently pledged to improve internal practices, but the situation remains challenging for the carrier.
