Air India seeks funds from Tata Sons, Singapore Airlines for upgrades
Air India is seeking ₹8,000-10,000 crore, according to the sources who added that the proposal is currently under the consideration by its shareholders.
Loss-making carrier Air India has sought funds from its promoters, Tata Sons and Singapore Airlines, to invest in upgrading its systems and services, sources aware of the matter said.
The airline is seeking ₹8,000-10,000 crore, according to the sources who added that the proposal is currently under the consideration by its shareholders.
Tata Sons did not respond to an email sent seeking clarification on the matter.
A Singapore Airlines spokesperson said, “As a significant minority shareholder in Air India, Singapore Airlines (SIA) has been working closely with our partner Tata Sons to support Air India’s transformation programme. This includes providing our expertise and support to Air India, where necessary.”
Fresh capital
In FY25, Tata Sons as well as SIA had infused a little over ₹9,500 crore in the airline, of which Tata group’s contribution had been over ₹4,000 crore. A similar amount is being requisitioned this year as well, the sources added.
Air India’s latest funding appeal comes amid a challenging operating environment, with the closure of Pakistan’s airspace pushing up costs. The curbs have led to longer routes to the US and Europe and higher fuel burn, resulting in an estimated ₹4,000-crore hit.
Key headwinds
The Boeing 787 accident at Ahmedabad in June dealt another setback for the airline that embarked on a five-year transformation programme in 2022. While the airline has cut back its capacity post the crash, seat retrofit programme has gathered steam after a long delay.
Air India posted a consolidated net loss of ₹10,859 crore in FY25, according to Tata Sons annual report. It registered a revenue of ₹78,636 crore in the same period.
Air India today announced the completion of the retrofit programme for its legacy A320neo fleet, with the final of 27 aircraft returning to service with brand-new cabin interiors and in the airline’s refreshed livery. With these, combined with 14 newly delivered A320neo aircraft and those integrated following the merger of Vistara into Air India, the airline now operates 104 A320 Family aircraft, featuring new or upgraded cabin interiors.
Commenced in September 2024 as part of a broader $400 million initiative to modernise Air India’s entire legacy fleet, the retrofit programme for all 27 legacy A320neo aircraft has been completed within a record one-year time frame.
Published on October 31, 2025
