Air India seeks $1.1 billion lifeline from Tata Sons, Singapore Airlines: Report
The request includes funds for overhauling Air India’s systems and services as well as developing in-house engineering and maintenance departments.
- Oct 31, 2025,
- Updated Oct 31, 2025 8:07 AM IST
Air India is seeking at least $1.1 billion in financial support from its owners Tata Sons and Singapore Airlines as the airline grapples with the aftermath of a deadly plane crash among other challenges, stated a report. The request comes as the carrier works to address multiple setbacks and maintain operations in an increasingly competitive market.
According to a report in Bloomberg that quoted people in the know, the request includes funds for overhauling Air India’s systems and services as well as developing in-house engineering and maintenance departments. The support is intended to help the airline recover from financial losses and address gaps in operational resilience.
Ownership of Air India is split between Tata Group, which holds a 74.9 per cent stake, and Singapore Airlines with the remaining share. Any financial support would be proportional to ownership, the report said, adding that the owners would decide if the funding will be an interest-free loan or via equity.
Air India’s pursuit of profitability faced additional pressure from extended flight routes after an armed border conflict in May with Pakistan resulted in airspace restrictions. This situation was further exacerbated when a Boeing 787 Dreamliner crashed on June 12 shortly after take-off from Ahmedabad, resulting in the deaths of all but one on board. Safety concerns following the tragedy led to a system-wide audit by India’s aviation regulator, and the airline subsequently reduced international flights on widebody jets by 15 per cent from June through August, impacting revenue.
As per the report, SIA has been closely involved in key functions such as engineering, operations and airport services at the airline after the Ahmedabad crash. Maintenance work for Air India is currently carried out by AI Engineering Services Ltd, a government-owned entity and former subsidiary of Air India. The financial support will help Air India scale up its own engineering and maintenance capabilities by building hangars at key airports in the country, the report added.
Air India is seeking at least $1.1 billion in financial support from its owners Tata Sons and Singapore Airlines as the airline grapples with the aftermath of a deadly plane crash among other challenges, stated a report. The request comes as the carrier works to address multiple setbacks and maintain operations in an increasingly competitive market.
According to a report in Bloomberg that quoted people in the know, the request includes funds for overhauling Air India’s systems and services as well as developing in-house engineering and maintenance departments. The support is intended to help the airline recover from financial losses and address gaps in operational resilience.
Ownership of Air India is split between Tata Group, which holds a 74.9 per cent stake, and Singapore Airlines with the remaining share. Any financial support would be proportional to ownership, the report said, adding that the owners would decide if the funding will be an interest-free loan or via equity.
Air India’s pursuit of profitability faced additional pressure from extended flight routes after an armed border conflict in May with Pakistan resulted in airspace restrictions. This situation was further exacerbated when a Boeing 787 Dreamliner crashed on June 12 shortly after take-off from Ahmedabad, resulting in the deaths of all but one on board. Safety concerns following the tragedy led to a system-wide audit by India’s aviation regulator, and the airline subsequently reduced international flights on widebody jets by 15 per cent from June through August, impacting revenue.
As per the report, SIA has been closely involved in key functions such as engineering, operations and airport services at the airline after the Ahmedabad crash. Maintenance work for Air India is currently carried out by AI Engineering Services Ltd, a government-owned entity and former subsidiary of Air India. The financial support will help Air India scale up its own engineering and maintenance capabilities by building hangars at key airports in the country, the report added.