Air India, under the Tata Group since January 2022, is progressing steadily on its ambitious five-year transformation plan. A major milestone was the merger of Vistara—Tata’s joint venture with Singapore Airlines (SIA)—into Air India in November 2024. As a result, Singapore Airlines acquired a 25.1% stake in the merged entity, solidifying their partnership in India’s aviation market.
In FY 2024–25, Air India received a significant capital infusion of INR 9,558 crore to support its operational and growth requirements. Tata Sons contributed INR 3,224.82 crore, while Singapore Airlines invested INR 6,333.18 crore. The funding is aimed at meeting capital expenditure, working capital needs, and growth initiatives aligned with the airline’s long-term strategy.
According to regulatory filings accessed by Tofler, the latest tranche in March saw Tata Sons receive over 523 crore equity shares and Singapore Airlines about 175 crore shares, each priced at INR 6.1632. The capital was raised via preferential allotment, with each INR 4 face value share issued at a INR 2.1632 premium.
Despite efforts to scale, Air India faces headwinds. Provisional figures show a INR 8,033 crore loss (before exceptional items) for the nine months ended December 2024, even as revenues touched INR 56,366 crore. The tragic June 12 crash of a Gatwick-bound flight from Ahmedabad, which killed 270 people, has further complicated the airline’s recovery.
