Key Highlights–
- Air India seeks ₹10,000 crore financial aid from Tata Sons and Singapore Airlines.
- The funding aims to overhaul safety systems and restore post-crash credibility.
- Merger, rising costs, and regulatory scrutiny deepen the airline’s challenges.
Air India is seeking at least ₹10,000 crore in financial assistance from its parent company, Tata Sons, and minority stakeholder Singapore Airlines as it struggles to recover from the fatal June crash that killed over 240 passengers, according to Bloomberg.
Air India Seeks ₹10,000 Crore Lifeline Amid Safety Crisis
The plea comes at a delicate juncture for the airline, which has been working to rebuild its image, modernise its fleet, and streamline operations since Tata Group acquired it in 2022. Tata Sons holds a 74.9% stake in Air India, while Singapore Airlines owns the rest.
Funds to Strengthen Safety and Overhaul Systems
The proposed infusion, which is expected to come through either an interest-free loan or fresh equity, would bolster the carrier’s core safety, engineering, and maintenance operations. Additionally, helping to accelerate staff training, cabin upgrades, and the integration of new technology.
Singapore Airlines told Reuters that it continues to work closely with Tata Sons to support Air India’s transformation programme and operational excellence. However, Air India and Tata Sons are yet to issue public comments on the reported bailout request.
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Crash Fallout and Long-Term Revival
The June crash, India’s deadliest in over a decade, has intensified regulatory scrutiny and revived concerns about Air India’s safety culture and managerial reforms. Despite plans to merge Vistara, order 470 new aircraft, and reclaim global routes, the airline now faces mounting losses and pressure to prove that its transformation extends beyond promises.
