Air India is seeking at least 100 billion rupees (US$1.14 billion) in financial support from owners Singapore Airlines and Tata Sons, Bloomberg News reported on Thursday (Oct 30), citing people familiar with the matter.
The development follows a deadly Air India crash in June that killed more than 240 passengers, plunging the carrier into its worst crisis and complicating its push to restore its reputation and modernise its fleet.
The Tata Group-owned carrier is requesting funds to overhaul Air India’s systems and services, as well as develop in-house engineering and maintenance departments, the report said.
Any financial support would be proportional to ownership, Bloomberg said, adding that the owners would decide if the funding would be an interest-free loan or via equity.
Tata Group, which bought Air India in 2022, has a 74.9 per cent stake in the airline, with Singapore Airlines holding the rest.
Reuters could not immediately verify the report. Air India, Singapore Airlines and Tata Sons did not immediately respond to Reuters’ requests for comment.
Earlier this week, Air India’s CEO vowed to improve the carrier’s internal practices.
https://www.channelnewsasia.com/asia/air-india-sia-tata-group-114-billion-lifeline-plane-system-5436906
