Tata Sons Chairman Hints at Further Capital Infusion for Air India's

Tata Sons Chairman N Chandrasekaran has signaled the conglomerate's readiness to inject further capital into Air India should the need arise. This statement comes as the Indian flag carrier reportedly seeks up to ₹10,000 crore (approximately $1.2 billion USD) from its promoters, Tata Sons and Singapore Airlines, to support ongoing fleet upgrades and operational enhancements. In the fiscal year 2025, both stakeholders collectively provided over ₹9,500 crore to Air India, underscoring the substantial investment required for the airline's turnaround.

Chandrasekaran acknowledged the significant headwinds impacting the global aviation sector, including persistent supply chain disruptions, escalating geopolitical tensions, and volatile capital and fuel costs. He highlighted the unpredictability in securing parts, infrastructure, and new aircraft, which complicates strategic planning. The Tata Sons chairman also pointed out the aviation industry's inherently thin margins and its "love-hate relationship" with oil prices, making financial management particularly challenging. Air India itself reported a consolidated net loss of ₹10,859 crore on revenues of ₹78,636 crore in FY25, while also grappling with cabin service quality issues.

Despite these formidable obstacles, Chandrasekaran reiterated Tata Group's unwavering commitment to Air India's comprehensive transformation, viewing it not merely as a business opportunity but also a national responsibility. He affirmed plans to introduce new aircraft into the fleet monthly over the next three years, aiming for 95-99 percent fleet modernization. This ambitious program seeks to enhance operational efficiency and customer experience, positioning Air India for long-term growth amidst a backdrop of high demand and growing aspirations within the Indian market.