Air India asks shareholders for $1.5 billion boost amid losses and airspace bans

Air India is seeking about $1.5 billion in fresh equity from its principal shareholders, Tata Sons and Singapore Airlines, after reporting a historic annual loss. The airline and Air India Express together lost $2.33 billion in the fiscal year that ended in March, more than twice the loss recorded the year before. The capital call, expected to be provided in multiple installments, follows Singapore Airlines’ May annual report that highlighted the depth of Air India’s financial challenges.

Operational pressures stem from Pakistan’s ban on Indian carriers, disruptions to routes caused by the Middle-East war, and the lingering impact of the deadly Ahmedabad crash. Tata Sons chairman N. Chandrasekaran, who will step down in February, has warned that the turnaround could take up to a decade and that further capital injections are likely needed. Singapore Airlines, which holds roughly a quarter of Air India, affirmed its commitment to the partnership but declined to detail the financing plan.