Tata Sons’ board has cleared a fresh capital infusion of over ₹10,000 crore (about $1.1 billion) into Air India, though the approval comes with conditions, sources told the Times of India.
It’s said to be one of Tata Sons’ largest commitments to the airline since the ₹18,000-crore acquisition in 2021.
Sources were quoted as saying that the board granted in-principle approval for fresh investment in Air India and other group ventures, subject to conditions.
“Any capital infusion will require Air India and other investee companies to present a business case when funding is sought,” one person told the Times of India.
According to the report, the decision was taken at a board meeting in June, chaired by N Chandrasekaran and attended by Tata Trusts chairman Noel Tata and vice-chairman Venu Srinivasan.
Under Article 121A of Tata Sons’ articles of association, investments above ₹100 crore require majority backing from Tata Trusts’ nominee directors, the report added.
The approval comes more than a year after Tata Sons paused equity injections into Air India, whose losses more than doubled to ₹22,238 crore in FY26.
Tata Sons’ board is due to meet on Sept 17, a week after Tata Trusts, excluding Sir Ratan Tata Trust (SRTT), meets Tata Trusts, excluding Sir Ratan Tata Trust (SRTT), meets on Sept 11.
SRTT has been barred from holding board meetings since May, pending an inquiry into alleged violations of the Maharashtra Public Trusts Act, the report added.
Air India seeks $1.5 billion from owners
On August 25, Reuters reported that Air India is seeking about $1.5 billion in fresh equity from its owners Tata Sons and Singapore Airlines, months after the second-largest Indian airline posted a record annual loss, two people familiar with the matter told Reuters.
“Air India wants the funds immediately, though the infusion is likely to happen in tranches. Singapore Airlines would need to contribute its share of the proposed infusion for the investment to go through,” one of the sources told Reuters.
It highlights the challenges facing the airline as it undergoes a multi-billion-dollar revamp, including the refurbishment of its existing fleet.
The carrier and its budget unit Air India Express posted combined losses of $2.33 billion in the fiscal year ended March, more than double the prior year’s losses. The losses have also weighed on Singapore Airlines’ profits, Reuters reported.
Earlier, in August, Singapore Airlines, which owns around 25 percent of Air India, said it was working closely with Tata Sons to support Air India’s transformation programme, but declined to comment on the airline’s finances.
The development comes as Tata Sons Chair N. Chandrasekaran prepares to step down in February following months of disagreements with the group’s controlling charitable trust, partly over Air India’s losses.
Chandrasekaran has said Air India’s turnaround could take up to a decade, citing persistent supply-chain disruptions and the need to overhaul the airline’s legacy systems, culture and fleet.