Air India seeks $1.5 billion from Tata and Singapore Airlines

Air India is seeking approximately $1.5 billion in fresh equity from its owners, Tata Sons and Singapore Airlines (SIA), to support its ongoing multi-billion-dollar transformation and fleet refurbishment. The request follows a record annual loss for the carrier and its budget unit, Air India Express, which posted combined losses of $2.33 billion for the fiscal year ending in March.

Singapore Airlines, which holds a 25.1% stake in Air India, stated that its board will carefully consider any funding request. The airline noted that any decision would be weighed against its own capital requirements, operating cash flow, and long-term multi-hub strategy. Temasek, a major shareholder of SIA, expressed support for the long-term strategic move into the Indian market, despite the complex operational challenges involved.

In separate aviation news, IndiGo Ventures has invested in Sarvam AI as part of the Indian artificial intelligence company's Series B funding round. The partnership aims to integrate AI technologies, including voice and agentic systems, into IndiGo's airline operations, passenger services, and workforce workflows to improve efficiency and customer experience.