Tata Sons to invest over ₹10,000cr in Air India
What's the story
Tata Sons' board has approved a capital infusion of over ₹10,000 crore into Air India. This is one of the largest investments in the airline since its ₹18,000-crore acquisition in 2021. The decision was made during a board meeting chaired by N Chandrasekaran and attended by Tata Trusts chairman Noel Tata and vice-chairman Venu Srinivasan.
Contingent commitment
Investment subject to conditions
The board's approval for the fresh investment in Air India and other group companies is subject to certain conditions.
As per Article 121A of Tata Sons' articles of association, investments over ₹100 crore require majority support from Tata Trusts' nominee directors.
This means that any capital infusion will need Air India and other investee companies to present a business case when funding is sought.
Debt burden
Financial woes of Air India
Air India's losses have more than doubled to ₹22,238 crore in FY26. The airline's debt has also ballooned to some ₹40,000 crore across 11 lenders.
State Bank of India is the biggest lender with an exposure of ₹18,500 crore followed by Bank of Baroda at ₹5,938 crore.
Tata Sons owns 73.8% stake in Air India while employees own about 1.5% through SBICAP Trustee Co and Singapore Airlines holds a 24.7% stake in the airline.