Kathmandu. Air India is looking for an additional investment of at least Rs 1 trillion to cover business losses and add infrastructure, Bloomberg News has reported.
Investors are looking for at least $1.14 billion in funding from Singapore Airlines and Tata Sons, Bloomberg News reported on Thursday, citing people familiar with the matter.
The development follows the Air India crash at Ahmedabad airport in Gujarat in June where more than 240 passengers were killed. Air India was plunged into the worst crisis due to this accident. Efforts to restore its prestige and modernize its airspace were complicated.
The Tata Group-owned carrier is seeking more investment to restructure Air India’s systems and services and develop its own engineering and maintenance divisions, the report said.
Any financing from both investors would be proportionate to ownership, Bloomberg said, adding that investors will decide whether the additional capital infusion will be just an interest-free loan or self-capitalized.
The Tata group, which bought Air India in 2022, owns 74.9 per cent stake in the airline, with the rest being invested by Singapore Airlines.
Reuters could not independently verify Air India’s request for additional financing. Air India, Singapore Airlines and Tata Sons did not immediately respond to Reuters requests for comment.
