Tata Sons approves over INR 10,000 crore boost for Air India

Dhaka: Tata Sons' board has approved a fresh capital infusion of more than INR 10,000 crore into Air India, marking one of the largest commitments by the Tata Group since it acquired the carrier in 2021 for INR 18,000 crore, according to media reports.

The in-principle approval came at a Tata Sons board meeting in June, chaired by N Chandrasekaran and attended by Tata Trusts Chairman Noel Tata and Vice-Chairman Venu Srinivasan.

The funding, however, comes with conditions. Air India and other group firms seeking capital will reportedly need to present a business case whenever the funds are required, people familiar with the matter confirmed.

The development comes over a year after Tata Sons had paused equity injections into Air India. The airline's losses more than doubled to INR 22,238 crore in fiscal year 2026.

Tata Sons' FY26 report showed its investment in Air India held steady at INR 22,618 crore during the year, suggesting no fresh equity was injected in that period.

Instead, the airline leaned on borrowings and other financing, pushing its outstanding debt to nearly INR 40,000 crore spread across 11 lenders.

Tata Sons currently holds a 73.8 percent stake in Air India, while Singapore Airlines owns 24.7 percent and employees hold roughly 1.5 percent through SBICAP Trustee Co.

If the fresh capital infusion results in an equity issue, Singapore Airlines would need to invest around INR 3,350 crore to retain its current stake and avoid dilution.