- Air India requested $1.5bn in fresh equity from Tata Sons and Singapore Airlines
- Combined losses for Air India and Air India Express hit $2.33bn
- Singapore Airlines holds a 25.1pc stake in the merged entity
- Previous capital reserves are insufficient for fleet modernisation targets
- The request is being carefully evaluated by Singapore regulators
Air India has requested approximately $1.5bn in fresh equity from its owners, Tata Sons and Singapore Airlines, to fund the airline’s next phase of expansion and operational investments after a period of mounting losses. Tata Sons holds a 74.9pc stake while Singapore Airlines owns the remaining 25.1pc of the merged entity.
Combined losses for Air India and its low-cost wing, Air India Express, hit $2.33bn. Previous capital reserves are no longer sufficient to maintain fleet modernisation and expansion targets. The request has drawn careful evaluation from regulators and investors in Singapore, given Singapore Airlines’ need to protect its own capital returns.
Singapore Airlines defended its ongoing involvement, stating to the Securities Investors Association that the stake recognises long-term potential in the growing Indian aviation market. Neither Air India nor Tata Sons have issued definitive public comments regarding how the equity burden will be split. The funding request comes as Air India continues its merger integration with Vistara.
Singapore Airlines shared the stake recognises long-term potential in the growing Indian aviation market. Air India shared in a written statement previous capital reserves are no longer sufficient to maintain fleet modernisation and expansion targets.
