Air India seeks $1B bailout from owners after deadly crash
What's the story
Air India is seeking a financial lifeline of at least ₹100 billion ($1.14 billion) from its owners, Singapore Airlines and Tata Sons, according to Bloomberg News. The request comes after a deadly crash in June that killed over 240 people, marking the carrier's worst crisis and complicating its efforts to restore its reputation and modernize its fleet.
Financial plans
Funding to be used for upgrading Air India's systems
The proposed funding would be used to revamp Air India's systems and services, as well as establish in-house engineering and maintenance departments. The decision on how the financial support will be provided, either through an interest-free loan or equity, will depend on ownership stakes. Tata Group, which acquired Air India in 2022, owns a 74.9% stake in the airline while Singapore Airlines holds the remaining share.
Leadership commitment
Air India CEO pledges to improve internal practices
Earlier this week, Air India's CEO Campbell Wilson pledged to improve the carrier's internal practices. He said the plane crash in June was devastating for everyone involved and their families, as well as the staff of Air India. The interim probe report into the crash showed that there was nothing wrong with either the aircraft, its engines, or the operation by the airline.