Air India has approached its shareholders for a fresh capital infusion of $1.5 billion as the airline’s transformation under the Tata Group continues to
require more time and money than initially anticipated. The funding request comes more than a year after Tata Sons stopped making additional equity investments in the carrier. If approved, the proposed infusion would be among the biggest rounds of shareholder funding for Air India since the Tata Group took control of the airline in 2021. The capital is expected to be provided in stages, according to a Reuters report. Singapore Airlines, which owns a 25 per cent stake in Air India, is also expected to participate in the funding exercise in proportion to its holding. Air India’s latest funding requirement highlights the financial demands of its ongoing turnaround programme. Tata Sons had not increased its equity investment in the airline during the financial year ended March 2026. According to Tata Sons’ FY2026 report, its investment in Air India remained at Rs 22,618 crore, unchanged from the previous year. The absence of fresh equity during the year indicates that the airline had been relying on other financing avenues while its owners evaluated its longer-term capital requirements. The proposed $1.5 billion infusion suggests that Air India now requires substantial additional funding to support the next stage of its transformation. Airline Reports Rs 22,238 Crore Loss In FY2026 The funding request comes against the backdrop of a steep increase in Air India’s losses. The airline posted a loss of Rs 22,238 crore in FY2026, more than twice the deficit recorded a year earlier. The loss was also the largest reported among companies within the Tata Group, adding to concerns over the scale and duration of the airline’s turnaround. Air India’s transformation is expected to be a prolonged exercise. In Tata Sons’ FY2026 report, Chandrasekaran said the turnaround could take as long as 10 years.
