Air India is reportedly seeking a financial lifeline of $1.14 billion from its owners, Tata Sons and Singapore Airlines (SIA). This request, first reported by Bloomberg News on Thursday, October 30, 2025, comes in the wake of a devastating Air India crash in June 2025 that claimed the lives of over 240 passengers. The tragic event has plunged the airline into a deep crisis, further complicating its efforts to restore its reputation and modernize its aging fleet.
The Tata Group-owned carrier has requested the funds to overhaul its systems and services and to develop in-house engineering and maintenance departments. The report suggests that any financial support would be proportional to the ownership stake, with the Tata Group holding 74.9% and Singapore Airlines owning the remaining 25.1%. The decision regarding the structure of the funding, whether it will be an interest-free loan or equity infusion, remains under consideration by the owners.
Neither Air India, Singapore Airlines, nor Tata Sons have officially commented on the matter, and Reuters was unable to independently verify the report.
This development occurs amidst Air India's ambitious five-year transformation plan, initiated after the Tata Group reacquired the airline in January 2022. The airline has been focused on growing its network and fleet, revamping its customer service, and enhancing safety, reliability, and on-time performance. Earlier this week, Air India's CEO pledged to improve the carrier's internal practices.
In November 2024, Vistara, a joint venture between Tata Sons and Singapore Airlines, was merged with Air India, with Singapore Airlines subsequently acquiring a 25.1% stake in the combined entity. In the financial year 2024-25, Tata Sons and Singapore Airlines invested ₹9,558 crore (approximately $1.09 billion) in Air India, with Tata Sons contributing ₹3,224.82 crore and Singapore Airlines adding ₹6,333.18 crore.
Despite these efforts, Air India Group, including Air India Express, posted a pre-tax loss of approximately $1.1 billion in the financial year ending March 2025. Air India itself reported a standalone pre-tax loss of ₹3,890.2 crore, while Air India Express, historically a profitable entity, reported a loss of ₹5,678.2 crore. As of the end of FY25, Air India carried a debt of ₹26,879.6 crore.
The aviation industry is closely watching how Tata Sons and Singapore Airlines respond to Air India's request, as it will significantly impact the airline's future and its ongoing efforts to regain its position as a leading global carrier.
