After the June plane crash that claimed more than 240 lives, Air India is seeking around ₹10,000 crore in financial support from its owners, Tata Sons and Singapore Airlines, according to a report by Bloomberg. The move comes as the airline struggles to handle the financial and reputational impact of the tragedy.
The request has surfaced at a crucial time for Air India, which has been trying to rebuild its image, modernise its ageing fleet, and improve operational efficiency since its takeover by theTata Group in 2022. At present, Tata Sons owns 74.9% of the airline, while Singapore Airlines holds 25.1%.
Sources quoted by Bloomberg said the proposed funding would be used to strengthen Air India’s safety, engineering, and maintenance systems. It would also help the airline invest in staff training, upgraded cabins, and new operational technologies. Discussions are still underway about whether the funding will come as an interest-free loan or a fresh equity infusion, depending on the ownership stakes.
In an emailed statement, Singapore Airlines said it continues to work closely with Tata Sons to support Air India’s transformation, including providing operational expertise. However, Air India and Tata Sons have not issued any official comments on the funding request.
The June crash, India’s deadliest air disaster in over ten years, has led to heightened regulatory scrutiny of Air India’s maintenance and pilot training standards. Investigators are currently examining both technical faults and human errors that might have caused the crash.
Air India’s CEO recently assured employees that internal reviews are underway to improve safety and tighten operational procedures. The airline has been pursuing a long-term revival plan, which includes merging Vistara into its operations, purchasing 470 new aircraft from Airbus and Boeing, and reclaiming international routes once dominated by foreign carriers.
However, the fatal crash has once again raised questions about Air India’s safety culture, reliability, and pace of reform. With competition growing and losses rising, the airline’s latest funding request shows it needs its investors to renew their trust, not just financially, but in Air India’s mission to rebuild as a strong national carrier.
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