Thursday, June 26, 2025
In the financial year 2024-2025, Tata Sons and Singapore Airlines made a significant financial commitment to Air India, infusing ₹9,558 crore into the airline. This capital was crucial to help Air India continue its ambitious turnaround strategy, which has been underway since Tata Sons assumed control in January 2022. Among this sum, ₹4,306 crore was injected in March 2025 alone, as the airline pushed forward with its transformation plans.
As part of its five-year recovery and growth program, Air India embarked on a notable development path, which included the strategic merger of Vistara, a joint venture between Tata Sons and Singapore Airlines, into the flagship carrier in November 2024. This merger marked a turning point, as Singapore Airlines acquired a 25.1% stake in Air India, further cementing the partnership between the two entities.
This financial injection was crucial for meeting Air India’s significant capital expenditure needs, covering working capital requirements, and supporting the airline’s various expansion and development projects. An Air India spokesperson confirmed that Tata Sons and Singapore Airlines collectively invested more than ₹9,500 crore into the airline in the 2024-25 financial year. Of this, Tata Sons contributed ₹3,224.82 crore, and Singapore Airlines provided ₹6,333.18 crore, strengthening Air India’s financial position.
The funds were injected through a preferential allotment of equity shares, with Tata Sons receiving over 523 crore shares and Singapore Airlines acquiring slightly more than 175 crore shares, each priced at ₹6.1632 per share. The share issue price included an additional premium of ₹2.1632 over the nominal value of ₹4 per share. The allotment was completed on March 20, 2025, representing a key milestone in Air India’s financial overhaul.
Prior to the March capital infusion, Singapore Airlines had previously invested ₹5,252.5 crore earlier in the financial year. Despite these significant investments, Air India faced financial challenges. As of the provisional results for the nine months ending December 31, 2024, the airline reported a loss of ₹8,033.1 crore before exceptional items, although its revenues stood at ₹56,366.8 crore.
These capital inflows from Tata Sons and Singapore Airlines highlight their commitment to stabilizing and growing Air India. The funding is seen as necessary to support the carrier’s modernization and fleet expansion, as well as to increase operational efficiency across its network.
However, the airline’s recovery efforts were recently overshadowed by a tragic accident on June 12, 2025, involving one of Air India’s Boeing 787-8 aircraft. The plane, bound for London Gatwick, crashed shortly after take-off from Ahmedabad, resulting in the loss of 270 lives, including the 241 passengers onboard. One passenger survived the crash, which also caused significant damage to a nearby medical hostel complex. This incident has led to further scrutiny of Air India’s operations as it continues to deal with the aftermath.
Despite these setbacks, Air India’s shareholders remain confident in the airline’s future, as evidenced by their continued financial support. The financial support from Tata Sons and Singapore Airlines reflects their confidence in Air India’s future growth and the success of its current transformation initiatives. With substantial investments being funneled into its operations, Air India is poised to continue its recovery efforts, though the road ahead remains challenging.
In conclusion, the ₹9,558 crore investment by Tata Sons and Singapore Airlines in Air India reflects a strong commitment to the airline’s long-term recovery and growth. Despite facing substantial financial losses and a tragic accident, the infusion of capital underscores the shareholders’ belief in Air India’s potential and the effectiveness of its transformation plan. With continued investment in its modernization, fleet expansion, and operational efficiency, Air India is positioning itself for a brighter future. However, as the airline moves forward, it will need to navigate both internal challenges and external circumstances to fully realize its ambitious goals and regain its competitive edge in the global aviation market.
