Tata Sons and Singapore Airlines invested ₹9,558 crore in loss-making Air India in 2024-25, with the promoters pumping in ₹4,306 crore alone in March this year.
The airline, being piloted by Tatas since January 2022, has embarked on an ambitious five-year transformation plan. In November 2024, Vistara – a joint venture between Tatas and Singapore Airlines – was merged with Air India, following which the Singaporean carrier acquired a 25.1% stake in Air India.
In response to queries about fundraising, an Air India spokesperson said that its shareholders have together infused fresh capital of more than ₹9,500 crore in 2024-25 to meet the airline’s capital expenditure requirements.
Tata Sons invested ₹3,224.82 crore, and Singapore Airlines put in ₹6,333.18 crore in Air India, taking the total fund infusion to ₹Rs 9,558 crore in the financial year ended March 2025.
“Pursuant to the merger of Vistara with Air India in November 2024, the shareholders have together infused fresh capital of over ₹9,500 crore in the fiscal year 2024-25. The said infusion is to meet the company’s requirement towards capital expenditure, working capital and growth initiatives,” the Air India spokesperson said in a statement.
In March this year, Tata Sons pumped in ₹3,224.82 crore, and Singapore Airlines invested ₹1,080.68 crore in Air India, according to regulatory filings accessed by business intelligence platform Tofler.
Through the preferential allotment route, Tata Sons was issued little over 523 crore equity shares and Singapore Airlines was allotted little more than 175 crore equity shares at a price of ₹6.1632 apiece, the filings showed.
The equity shares, having a face value of ₹4 apiece, were issued with a premium of ₹2.1632 per equity share. They were allotted on March 20.
Prior to the funding in March, Singapore Airlines had invested ₹5,252.5 crore in Air India in 2024-25.
For the nine months ended December 31, 2024, Air India Group’s loss before exceptional items stood at ₹8,033.1 crore while revenues were ₹56,366.8 crore, as per the provisional figures mentioned in the filings.
Currently, Air India is grappling with the fallout of the fatal crash of its London Gatwick-bound Boeing 787-8 aircraft soon after take-off from Ahmedabad on June 12. In the accident where the aircraft crashed into a medical hostel complex in Ahmedabad, 270 people died, including 241 who were onboard. One passenger survived.