Air India Seeks ₹10,000 Crore Support from Tata and Singapore Airlines to Restore Safety and Reputation

Air India is seeking a financial lifeline of around ₹10,000 crore from its parent companies — Tata Sons and Singapore Airlines — as it faces mounting challenges following the tragic June crash that claimed over 240 lives. The funding request underscores the carrier’s urgent need to stabilise operations, restore public confidence, and reinforce its long-term transformation plan.

The move comes at a critical juncture for the airline, which has been undergoing an extensive revival since its acquisition by the Tata Group in 2022. Tata Sons currently holds a 74.9% stake in Air India, while Singapore Airlines owns the remaining share. The fresh capital is expected to bolster the airline’s safety, maintenance, and training infrastructure — areas that have come under intense regulatory scrutiny after the accident.

Focus on Safety and Structural Overhaul

Sources suggest the proposed funds will be channelled into modernising Air India’s core safety systems, upgrading engineering and maintenance operations, and accelerating investment in staff training. The plan also includes improving cabin facilities and adopting new operational technologies to enhance passenger experience and safety compliance.

The funding structure remains under discussion, with options such as an interest-free loan or equity infusion being considered in proportion to the shareholders’ stakes. Singapore Airlines, in response to queries, confirmed its continued collaboration with Tata Sons to support Air India’s ongoing transformation, including operational and technical expertise.

Setback After the June Crash

The fatal June crash — India’s deadliest air disaster in more than a decade — has significantly disrupted Air India’s turnaround progress. Investigators have been examining both mechanical failures and procedural lapses, prompting the Directorate General of Civil Aviation (DGCA) to tighten oversight across all Air India operations.

In an internal communication, Air India’s CEO reportedly assured employees that comprehensive internal audits are underway to enhance safety discipline and operational precision.

A Vision for Revival Amid Challenges

Despite the setback, Air India continues its ambitious revival strategy, which includes the merger of Vistara, the integration of operations, and the procurement of 470 new aircraft from Airbus and Boeing — one of the largest orders in aviation history. The carrier is also eyeing the restoration of premium international routes once dominated by Middle Eastern competitors.

However, the recent crisis has reignited debates about Air India’s organisational culture, managerial accountability, and the pace of reform. As competition from private and international airlines intensifies, the carrier’s call for shareholder support highlights a crucial reality — rebuilding India’s national airline will demand not only capital but renewed confidence in its safety and service standards.