Air India seeks ₹10K cr from owners for system upgrade

UNPROFITABLE AIR INDIA is seeking at least ₹10,000 crore ($1.1 billion) in financial support from its owners Tata Sons and Singapore Airlines, said people familiar with the matter, as the airline grapples with the aftermath of a deadly plane crash among other challenges.

- MIHIR MISHRA & P R SANJAI

The request includes funds for overhauling Air India’s systems and services as well as developing in-house engineering and maintenance departments, some of the people said, requesting not to be identified as the information is not public.

The ailing carrier is far from a goal of breaking even operationally by end of March next year after facing multiple setbacks. The appeal for more funding underscores the challenges of operating in the India’s aviation market where many carriers have exited after burning cash.

Sector leader Interglobe Aviation, which operates the IndiGo fleet, is the only profitable domestic carrier with over 64% market share.