Air India Seeks ₹13,000 Crore Funding Amid Financial Crisis Air India has approached Tata Sons and Singapore Airlines for additional funding to stabilize its operations amid severe financial challenges. The airline, which has been struggling with mounting losses, is seeking ₹13,000 crore in new capital injections to address its liquidity crisis. This comes as the carrier continues to navigate a period of intense financial strain, exacerbated by a combination of operational setbacks and external factors. Since Tata Group took control of Air India in 2022, the airline has faced mounting difficulties. The current financial crisis has been worsened by a series of events, including the 2023 Ahmedabad air crash, which led to significant reputational and financial damage. Additionally, the ongoing Middle East conflict has disrupted international routes, leading to higher operational costs and reduced revenue. These challenges have contributed to a sharp rise in losses, with Air India and its budget subsidiary, Air India Express, reporting a combined loss of ₹20,000 crore for the fiscal year ending March 2026. This is double the loss recorded in the previous fiscal year, highlighting the severity of the situation. Singapore Airlines, which holds approximately 25% equity in Air India, is also being sought for financial support. The airline’s existing stake means it would need to contribute additional capital if the funding plan is to materialize. However, the funding is expected to be disbursed in phases, with the exact timeline yet to be finalized. The need for immediate financial assistance underscores the urgency of the crisis, as Air India faces mounting pressure to restore profitability. The airline’s financial struggles have also impacted its parent company, Tata Sons. The chairman of Tata Sons, N.#middle_east_conflict #air_india #singapore_airlines #tata_sons #ahmedabad_air_crash
