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Air India Seeks At Least $1.1 Billion From Tata Sons and Singapore Airlines for Overhaul and In‑House Maintenance Buildout

Owners are weighing proportional support and whether to fund the request as interest‑free loans or equity, according to a Bloomberg report citing people familiar.

Overview

  • Reported funding would upgrade Air India’s systems and services and establish in‑house engineering and maintenance capabilities, including new hangars at key airports.
  • The appeal follows a June 12 Boeing 787 crash near Ahmedabad that left only one survivor, triggering a regulator audit and a roughly 15% cut to international widebody flying from June through August.
  • Air India’s international revenue was also pressured after Pakistan’s airspace closure in May forced longer Europe and U.S. routings, the reports said.
  • Tata Group holds 74.9% of Air India and Singapore Airlines owns the remainder, and any support would track those stakes, according to the coverage.
  • Singapore Airlines has taken a more hands‑on role in engineering, operations, and airport services since the crash, while Air India currently relies on government‑owned AI Engineering Services Ltd for maintenance.