Tata Sons has given in-principle approval for a fresh capital infusion of more than ₹10,000 crore into Air India, marking one of the group’s largest financial commitments to the airline since its acquisition in 2021.
The proposed investment, estimated at around $1.1 billion, comes as Air India continues to navigate financial pressures linked to its ongoing transformation, fleet expansion and network development programmes. The airline’s losses reportedly more than doubled to ₹22,238 crore in FY26, while its outstanding debt has increased to around ₹40,000 crore across 11 lenders.
The approval is subject to certain conditions, with Air India and other Tata group companies required to submit detailed business cases whenever additional funding is sought.
The decision was taken at a Tata Sons board meeting in June, chaired by Tata Sons Chairman N. Chandrasekaran. Tata Trusts Chairman Noel Tata and Vice-Chairman Venu Srinivasan also attended the meeting.
The proposed funding is expected to provide Air India with additional financial support as it progresses with its restructuring, fleet modernisation and network expansion plans.
Singapore Airlines Could Also Participate
Tata Sons currently holds approximately 73.8% of Air India, while Singapore Airlines owns around 24.7%. A fresh equity infusion by Tata Sons could require Singapore Airlines to invest approximately ₹3,350 crore to maintain its existing stake and avoid dilution.
Singapore Airlines has been evaluating its participation in further funding as Air India continues its long-term transformation programme.
Tata Group acquired Air India for ₹18,000 crore in 2021. The proposed infusion represents a significant additional financial commitment to the airline. Tata Sons’ FY26 investment in Air India stood at ₹22,618 crore, indicating that no fresh equity investment was made during that financial year.
The latest capital plan comes as the Tata group seeks to support Air India’s long-term growth ambitions while maintaining greater financial discipline and improving the airline’s underlying performance.