New Delhi: Months after the tragic plane crash in Ahmedabad that killed over 240 people, Air India is seeking Rs 10,000 crore ($1.1 billion) in financial
help from its owners, Tata Sons and Singapore Airlines, Bloomberg reported. According to the report, the airline has requested funds to upgrade systems and services and to build in-house engineering and maintenance units. Air India’s financial troubles have worsened in recent months, making it difficult for the carrier to meet its earlier goal of breaking even by March 2026. The airline is jointly owned by Tata Sons (74.9%) and Singapore Airlines (25.1%). Bloomberg said any financial support will likely be split based on ownership and could come either as an interest-free loan or fresh equity infusion.
Struggling To Stay Afloat
India’s aviation market remains highly competitive, with most airlines facing mounting losses. IndiGo, operated by InterGlobe Aviation, is currently the only profitable carrier, holding over 64% market share.
Air India’s turnaround plan suffered several blows this year. In May, the airline was forced to operate longer non-stop west-bound flights due to airspace restrictions imposed after India and Pakistan engaged in a military standoff.
The restrictions followed Operation Sindoor, India’s pre-emptive military strike on terror camps in Pakistan and Pakistan-occupied Kashmir in April, after a terror attack in Pahalgam killed 26 people, mostly tourists. The longer routes significantly increased fuel and operating costs for the airline.
Ahmedabad Crash Deepened Crisis
The carrier’s financial position worsened further after a Boeing 787 Dreamliner headed to London crashed on June 12 shortly after take-off from Ahmedabad, killing all but one passenger.
Following the tragedy, the Directorate General of Civil Aviation (DGCA) ordered a comprehensive safety audit of Air India’s operations. The airline also cut its international widebody services by 15% between June and August, which further reduced revenue.
Rs 4,000 Crore Loss Expected: Air India CEO
Earlier this week, Air India CEO Campbell Wilson said the carrier expects to lose around Rs 4,000 crore this year, mainly due to Pakistan’s airspace restrictions.
“While there are many uncertainties affecting travel demand, they cannot derail our long-term plans,” Wilson said.
The latest funding request highlights how difficult it has become for Air India to stay competitive, even under Tata Group’s ownership and with Singapore Airlines’ backing.
