Air India seeks 100 billion rupees lifeline from SIA and Tata: report
The development follows a deadly Air India crash in June that killed more than 240 passengers
[BENGALURU] Air India is seeking at least 100 billion rupees (S$1.5 billion) in financial support from owners Singapore Airlines and Tata Sons, Bloomberg News reported on Thursday (Oct 30), citing sources 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 developing 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 will 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.
Singapore Airlines has been working closely with their partner Tata Sons to support Air India’s transformation programme, including providing expertise and support to the airline, a spokesperson for Singapore Airlines said in an e-mail response to Reuters.
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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. REUTERS
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