Tata Sons has approved in principle a fresh capital injection of more than ₹10,000 crore into Air India, with the release of funds tied to business plans from the airline and other Tata investee companies. The move comes as Air India faces widening losses, heavier debt and higher turnaround costs after the Tata Group’s 2021 takeover, while shareholder support for further funding remains under discussion.
The decision was taken at a June board meeting chaired by N. Chandrasekaran and attended by Tata Trusts chairman Noel Tata and vice-chairman Venu Srinivasan. Air India’s FY26 loss is estimated at ₹22,238 crore, more than double the previous year, and its debt has climbed to about ₹40,000 crore across 11 lenders. Tata Sons’ FY26 investment in the carrier was unchanged at ₹22,618 crore, indicating no fresh equity was injected during that year.
Air India had sought about $1.5 billion in new equity from Tata Sons and Singapore Airlines as it works through an expensive turnaround. Singapore Airlines has indicated it will assess any request carefully, with its board retaining the final decision on further investment.