Air India nears $1.1 billion financial support from Tata, Singapore Airlines
The funding will be linked to performance milestones and released in installments
- Sep 3, 2026,
- Updated Sep 3, 2026 2:54 PM IST
Air India is close to securing Rs 10,000 crore ($1.1 billion) in financial support from its owners Tata Sons Pvt. and Singapore Airlines Ltd, Bloomberg reported on Thursday, citing people familiar with the matter.
The funding will be linked to performance milestones and released in installments, the report said.
The support will be provided in proportion to the companies' shareholdings. Tata Sons owns 74.9% of Air India, while Singapore Airlines holds the remaining stake.
The funding comes as Air India deals with the fallout from a turbulent year.
Must Read: Meet Tewolde Gebremariam, Air India's new CEO who transformed Ethiopian Airlines
The airline has faced the deadly crash of a Boeing 787 Dreamliner, the closure of Pakistani airspace to Indian carriers, and disruption from the conflict in West Asia. The events have affected travel and pushed up fuel costs.
Air India reported an annual loss of more than Rs 22,000 crore for the financial year ended March 31, 2026. The loss was wider than expected.
Air India had been seeking at least Rs 10,000 crore in support from its owners, according to people familiar with the matter cited in an earlier report last year.
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Focus On Recovery
Tewolde Gebremariam, who is set to join Air India as chief executive officer later this month, plans to strengthen the airline’s cargo business and address aircraft maintenance problems.
The airline has spent months dealing with the consequences of the 787 Dreamliner crash. The financial strain has also drawn scrutiny from within the Tata group.
Noel Tata, chairman of Tata Trusts, which controls Tata Sons, has raised concerns about Air India's losses at several board meetings, Reuters reported last month.
Despite the losses, the airline continues to have the backing of its owners. Tata Sons and Temasek, which is the majority owner of Singapore Airlines, have separately said they will continue supporting Air India.
Air India is close to securing Rs 10,000 crore ($1.1 billion) in financial support from its owners Tata Sons Pvt. and Singapore Airlines Ltd, Bloomberg reported on Thursday, citing people familiar with the matter.
The funding will be linked to performance milestones and released in installments, the report said.
The support will be provided in proportion to the companies' shareholdings. Tata Sons owns 74.9% of Air India, while Singapore Airlines holds the remaining stake.
The funding comes as Air India deals with the fallout from a turbulent year.
Must Read: Meet Tewolde Gebremariam, Air India's new CEO who transformed Ethiopian Airlines
The airline has faced the deadly crash of a Boeing 787 Dreamliner, the closure of Pakistani airspace to Indian carriers, and disruption from the conflict in West Asia. The events have affected travel and pushed up fuel costs.
Air India reported an annual loss of more than Rs 22,000 crore for the financial year ended March 31, 2026. The loss was wider than expected.
Air India had been seeking at least Rs 10,000 crore in support from its owners, according to people familiar with the matter cited in an earlier report last year.
In Case You Missed IT: Air India, Drukair tie up: One ticket can now take you from India to Bhutan and beyond
Focus On Recovery
Tewolde Gebremariam, who is set to join Air India as chief executive officer later this month, plans to strengthen the airline’s cargo business and address aircraft maintenance problems.
The airline has spent months dealing with the consequences of the 787 Dreamliner crash. The financial strain has also drawn scrutiny from within the Tata group.
Noel Tata, chairman of Tata Trusts, which controls Tata Sons, has raised concerns about Air India's losses at several board meetings, Reuters reported last month.
Despite the losses, the airline continues to have the backing of its owners. Tata Sons and Temasek, which is the majority owner of Singapore Airlines, have separately said they will continue supporting Air India.