Overview
- Air India has asked Tata Sons and Singapore Airlines for about $1.5 billion in fresh equity, with discussions ongoing and no formal agreement announced.
- The carrier wants the funds to be available immediately but expects the cash to be injected in tranches, according to people familiar with the matter.
- Air India and its low-cost unit reported a combined loss of $2.33 billion for the fiscal year ended March, a shortfall that prompted the funding plea.
- The airline's international operations and revenues have been hit by Pakistan's airspace ban on Indian carriers, disruptions from the West Asia war, and last year's fatal crash that killed 260 people.
- Tata's planned leadership change and Singapore Airlines' roughly 25% stake mean owners must decide on backing now, and analysts expect further capital needs and pressure on costs in coming years.