Air India seeks over $1 billion in financial support from owners Tata Sons, Singapore Airlines: Report

Air India is reportedly seeking at least ₹100 billion ($1.14 billion) in financial support from owners Singapore Airlines and Tata Sons.

The development follows a deadly Air India crash in June that killed more than 240 passengers. The incident plunged the carrier into its worst crisis, complicating its push to restore its reputation and modernise its fleet, Bloomberg reported.

Sources told the media house that the Tata Group-owned carrier is requesting funds to overhaul Air India's systems and services as well as developing in-house engineering and maintenance departments, the report said.

Any financial support would be proportional to ownership, Bloomberg said, adding that the owners would decide if the funding will be an interest-free loan or via equity.

Tata Group, which bought Air India in 2022, has a 74.9 percent stake in the airline, with Singapore Airlines holding the rest.

Reuters could not immediately verify the report. Air India, Singapore Airlines and Tata Sons did not immediately respond to Reuters' requests for comment.

Earlier this week, Air India's CEO vowed to improve the carrier's internal practices.

Air India plane crash

In one of the worst aircraft accidents in India, a total of 260 people, including 241 passengers, died after Air India's Boeing 787-8 aircraft operating flight AI171 to London Gatwick crashed soon after take off from Ahmedabad on June 12 this year.

Air India CEO Campbell Wilson said on Wednesday that the plane crash in June was devastating for people, families and the staff involved, and the airline has been doing everything to support those affected to ease their journey forward.

Speaking at a conference in Delhi, Wilson said the interim probe report into the crash indicated that there was nothing wrong with the aircraft, the engines and the operation of the airline.

"We obviously, as with everyone else, we await the final report, and if there's anything to learn from it, we will," he said at his first public engagement in India post the aircraft crash.

“It was absolutely devastating for the people involved, for the families of those involved, and the staff,” he said.

"And since that time, we have really been doing absolutely everything we can to support those affected, both families and also those on the ground, also the first responders, and really do whatever we can to ease their journey forward," Wilson said.

($1 = 87.8950 Indian rupees)

(With inputs from Bloomberg and PTI)