Air India has sought nearly $1.5 billion, or about ₹14,313 crore, in fresh equity funding from its owners Tata Sons and Singapore Airlines as the carrier continues to face heavy losses and works through a prolonged turnaround effort.
The airline, together with Air India Express, recorded a combined loss of about $2.33 billion, or more than ₹22,000 crore, in the financial year ended March 2026. The fresh funding request has now drawn attention in Singapore because Singapore Airlines owns about 25% of Air India, while Tata Sons holds roughly 75%.
Singapore Lawmaker Questions Fresh Funding Demand
Singapore Workers’ Party MP Kenneth Tiong Boon Kiat has raised questions over Air India’s latest funding requirement and said he would seek answers from the country’s transport minister during a parliamentary sitting scheduled for September 8. He noted that any additional funding provided by Singapore Airlines could also have implications for Temasek Holdings, the Singapore government investment company and the largest shareholder in Singapore Airlines.
Tiong questioned whether future use of Temasek-linked funds should be supported to help finance Air India, arguing that continued participation should be a decision for Singapore Airlines itself rather than one dependent on Temasek money.
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Turnaround Could Take Up to a Decade
The fresh capital requirement comes as Air India remains in the middle of a large-scale restructuring effort. Tata Sons chairman N. Chandrasekaran has previously said that a full turnaround of the airline could take up to 10 years. Reports also note that Singapore Airlines suffered losses in the previous quarter, adding further sensitivity to the funding debate.
Air India has been investing heavily in its business as part of the turnaround. The measures include refurbishment of older aircraft, improvements to the fleet and operational changes intended to strengthen the airline over the long term.
Losses Deepen as Airline Faces Multiple Challenges
The funding request follows a difficult period for Air India. The carrier has had to deal with the Ahmedabad aircraft crash, Pakistan’s airspace ban and disruptions to its international flight network caused by the US-Iran conflict.
These pressures have added to the financial strain at a time when Air India is already spending heavily on fleet and operational improvements.
The latest funding request indicates that the airline may require further capital before its restructuring begins to deliver sustained financial improvement. No final decision on the proposed $1.5 billion funding has yet been reported.
