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Air India taps promoters Tatas, Singapore Airlines for $1.5-billion funding
- IBJ Bureau
- Aug 26, 2026
Air India is seeking about $1.5 billion in fresh equity from its owners Tata Sons and Singapore Airlines months after the second-largest Indian airline posted a record annual loss, two people familiar with the matter have told the Reuters.
It would be one of Air India’s largest publicly reported requests for shareholder funding since the Tatas took control of the former State-owned carrier in 2022.
It highlights the challenges facing the airline as it undergoes a multi-billion-dollar revamp, including the refurbishment of its existing fleet.
The carrier and its budget unit Air India Express posted combined losses of $2.33 billion in FY26, more than double the prior year's losses. The losses have also weighed on Singapore Airlines' profits.
“Air India wants the funds immediately, though the infusion is likely to happen in tranches. Singapore Airlines would need to contribute its share of the proposed infusion for the investment to go through,| one of the sources has said.
The airline is seeking the funding in the form of fresh equity, the two people have said.
Discussions are ongoing, and no decision has been taken on the request, they have added.
Air India and Tata Sons have not responded to the Reuters’ requests for comment.
Singapore Airlines, which owns around 25 per cent of Air India, has said that it is working closely with Tata Sons to support Air India’s transformation programme but declined to comment on the airline's finances.
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