NEW DELHI
Air India is turning to its owners for a massive financial rescue after reporting a staggering loss of over ₹22,000 crore for the past year.
The airline, owned by the Tata Group and Singapore Airlines, is currently in talks for a fresh cash infusion to stay afloat. This financial crisis comes at a difficult time, as the airline also faces leadership changes with CEO Campbell Wilson preparing to step down later this year.
Several major setbacks contributed to this record-breaking loss. Operational costs spiked after Pakistani airspace was closed to Indian carriers, forcing planes to take longer, more expensive routes to the West. The airline’s reputation and schedule were also hit hard by a tragic Boeing 787 crash last June, which led to a significant cut in flight services. Furthermore, ongoing conflicts in the Middle East, a region that accounts for 16 percent of the airline’s business, have disrupted major international routes and sent fuel prices soaring.
The struggle is also hurting Singapore Airlines, which owns about a quarter of the company. Since merging its Vistara brand into Air India in 2024, the Singaporean partner has seen its own earnings dragged down by these mounting debts. While the Tata Group remains committed to transforming the former state-run carrier, experts suggest the planned funding might still fall short of what is actually needed to fix the airline’s deep financial and operational problems in such a volatile global market.
