Air India Seeks $1.14 Billion Financial Aid from Tata Sons and Singapore Airlines Amid Crisis

Air India is reportedly seeking financial assistance of Rs 10,000 crore ($1.14 billion) from its majority stakeholders Tata Sons and Singapore Airlines, according to recent reports.

The national carrier is facing significant challenges, including projected losses of approximately Rs 4,000 crore resulting from Pakistan's airspace restrictions following military tensions between India and Pakistan in May. Additionally, the airline is still dealing with the aftermath of the tragic Ahmedabad crash in June.

According to Bloomberg sources, the requested financial aid would be utilized to enhance the airline's systems and services, as well as to develop in-house engineering and maintenance capabilities. Air India has not yet issued an official comment regarding this report.

Tata Group holds a 74.9 percent ownership stake in Air India, while Singapore Airlines controls the remaining 25.1 percent.

Campbell Wilson, Air India's Managing Director and Chief Executive Officer, recently addressed the preliminary findings of the Aircraft Accident Investigation Bureau (AAIB) regarding the AI-171 crash. Speaking at the 'Aviation India 2025' summit, Wilson stated that the July report found "nothing wrong" with the airline's procedures or aircraft maintenance that would necessitate operational changes.

Despite these findings, Wilson emphasized that the airline continues to evaluate and improve its systems. "Anything that happens in the industry, whether that's us or others, is a cause for introspection. It's a cause for reviewing practices," he remarked.

Wilson further stated: "The interim report indicated that there was nothing wrong with aircraft engines or practices that required changing. But, of course, we're always looking at how we can keep improving, get better, and keep learning."

These statements come in the context of the devastating Air India Flight AI-171 accident on June 12. The Boeing 787 Dreamliner, en route from Ahmedabad to London, crashed into a college building shortly after takeoff, resulting in 241 fatalities with only one survivor.

The AAIB's preliminary investigation, released on July 12, determined that fuel supply to both engines was interrupted shortly after the aircraft departed.