Air India is close to securing a financial package of about ₹10,000 crore from its owners Tata Sons and Singapore Airlines. The support will be released in stages and linked to performance milestones, ensuring accountability as the airline works to recover from a difficult year.
Tata Sons holds nearly 75% of Air India while Singapore Airlines owns the rest. The aid comes after the carrier reported a record loss of ₹22,000 crore in the last financial year. Rising fuel costs, disruptions caused by Middle East conflicts, and the closure of Pakistani airspace added to the burden.
The airline also faced reputational and operational challenges following a Boeing 787 Dreamliner crash, which strained management and increased expenses. Chief Executive Officer‑designate Tewolde Gebremariam, expected to join soon, plans to strengthen cargo operations and improve maintenance systems to restore efficiency.
Despite concerns expressed by Tata Trusts chairman Noel Tata over mounting losses, both Tata Sons and Temasek, the majority owner of Singapore Airlines, have reaffirmed their commitment to supporting Air India. The package is seen as vital to stabilizing operations, protecting jobs, and maintaining connectivity in India’s aviation sector.
This infusion of funds marks a decisive step in Air India’s turnaround plan, combining shareholder backing with strict performance‑linked conditions to ensure sustainable recovery.