Air India seeks fresh equity injection from SIA and Tata

Air India has launched a capital-raising initiative seeking fresh equity investment of approximately S$1.9 billion from its strategic partners Singapore Airlines and Tata Group. The move comes as the airline grapples with significant financial headwinds, having reported losses exceeding S$2 billion in the 2025/26 fiscal year.

The equity infusion represents a critical lifeline for the Indian carrier as it works to stabilize operations and strengthen its balance sheet. Air India has been undergoing a comprehensive restructuring programme following its acquisition by Tata Group, which took control of the airline in 2021 after the government divested its stake.

Singapore Airlines, which holds a minority stake in Air India, is expected to participate in the funding round alongside Tata Group, deepening the partnership between the two carriers. The investment would provide additional resources for fleet modernization, operational improvements, and debt servicing as Air India navigates a challenging revenue environment.

The capital injection underscores the ongoing financial pressures facing airlines across the region as they contend with elevated fuel costs, inflationary pressures, and competitive market dynamics. Air India's pursuit of fresh equity demonstrates the substantial capital requirements needed to maintain competitiveness in the aviation sector.