Air India is seeking about $1.5 billion in fresh equity from Tata Sons and Singapore Airlines as the carrier continues its turnaround programme and absorbs heavy losses from the latest financial year. The funding request comes as the airline pushes ahead with a broad fleet and network overhaul while facing pressure to shore up its balance sheet.
The proposal remains under discussion and no decision has been taken. Sources close to the talks indicated the money could be provided in tranches, with Singapore Airlines expected to contribute its share if the plan proceeds.
The request follows Air India Group’s record annual loss and adds to the capital demands of a major restructuring effort under Tata ownership. Air India and Air India Express together reported combined losses of about $2.33 billion for the fiscal year ended in March, more than double the previous year. Singapore Airlines has continued to back the transformation programme alongside Tata Sons, while declining to comment on finances.