Air India seeks S$1.46 billion lifeline from Singapore Airlines and Tata Sons: report
Air India is reportedly seeking a S$1.46 billion financial lifeline from Singapore Airlines and Tata Sons to strengthen its operations and safety standards, marking one of the largest post-privatisation funding requests for the carrier.
- Air India has reportedly asked its shareholders, Singapore Airlines (SIA) and Tata Sons, for at least ₹100 billion (about S$1.46 billion) in fresh funding to accelerate its turnaround.
- The funds are expected to support safety reforms, in-house engineering, and modernisation of the airline’s systems.
- The request follows a deadly crash in June 2025 and growing financial pressures on India’s flag carrier.
Air India has requested a significant cash injection from its main shareholders — Tata Sons and Singapore Airlines — to sustain its ongoing transformation, according to a Bloomberg News report published on 30 October 2025.
The airline has asked for at least ₹100 billion (around S$1.46 billion) in proportion to existing stakes, with Tata Sons holding 74.9 per cent and SIA the remaining 25.1 per cent.
The funding would bolster Air India’s internal systems, expand its maintenance network, and support a series of operational reforms following recent safety and service concerns. Neither shareholder has confirmed the exact amount being considered, though both are reportedly in active discussions.
Singapore Airlines said in a brief statement that it “remains committed to working closely with Tata Sons on Air India’s transformation,” calling the partnership “strategic and long-term in nature.”
A carrier under pressure
The request comes during a turbulent phase for the airline. In June 2025, Air India experienced one of its worst disasters in decades, when a crash claimed more than 240 lives.
The tragedy reignited scrutiny of its maintenance systems, operational oversight, and management efficiency.
Since Tata Sons reacquired Air India in 2022 after nearly 70 years of state ownership, the group has launched an extensive reform plan focusing on fleet renewal, digital upgrades, and customer-service improvements.
Aviation consultant Rahul Bhatia noted that financial support alone will not ensure recovery.
“The challenge for Air India is not only financial. The airline must restore trust through visible safety and service improvements,” he said.
How the money would be used
Industry insiders told Bloomberg the proposed capital would cover four major areas of reform:
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System modernisation: investment in digital operations, safety-tracking software and passenger-service platforms.
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Engineering and maintenance: building in-house capabilities to reduce outsourcing costs and delays.
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Safety and training: upgrading flight-crew training and compliance monitoring to rebuild public confidence.
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Operational integration: harmonising systems across Air India, Vistara and Air Asia India under the Tata Group umbrella.
The company has already ordered more than 470 new aircraft, but delivery delays and high operating costs have strained liquidity, heightening the urgency of this funding request.
Reuters reported that it reached out to Air India, Tata Sons and Singapore Airlines for comment on the reported funding request.
All three declined to provide detailed responses on the matter.
However, Singapore Airlines confirmed that “ongoing discussions are part of a broader collaboration to strengthen Air India’s operations.” Tata Sons did not immediately reply to further questions.
