Tata Sons, Singapore Airlines discuss funding roadmap for Air India amid rising losses

Mumbai | New Delhi: Tata Sons chairman N Chandrasekaran and Singapore Airlines (SIA) CEO Goh Choon Phong met at Bombay House on Thursday to discuss the funding road map for Air India, said people with knowledge of the matter, with the airline continuing to incur losses while it battles escalating global geopolitical turbulence.

Both sides discussed the possibility of providing additional funding to Air India, they said.

SIA holds a 25.1% stake in Air India. SIA and Tata Sons, the holding company of the Tata Group, have invested a total ₹9,500 crore in the airline.


The strategic meeting between the two leaders comes as Air India faces mounting challenges, marked by volatile fuel prices, air-corridor disruptions, and a decline in travel sentiment in key markets. Air India's net loss is expected to have more than doubled to more than ₹20,000 crore in FY26 from ₹9,568 crore in FY25.

Air India is also looking for a successor to Campbell Wilson, who resigned as CEO recently. Chandra and Phong are understood to have discussed possible candidates for the role. Making the key hire will be a challenge given global uncertainties, although discussions have been held in this regard with some global executives, the people said.

Tata Sons did not comment.

Air India's capital allocation, fleet commitments and balance-sheet priorities were among the issues reviewed in the meeting, said the people cited above.

Chandrasekaran recently assured Air India staff that the Tata Group will continue to back the carrier as it navigates the current difficult phase.

"The Tata Group remains committed to the Air India group. The board is fully supportive and will continue to work closely with the management team," Chandrasekaran had said at a town hall at the airline's Gurugram headquarters last week.

Wilson's exit has drawn attention to the challenges facing Air India, which the Tata Group reacquired from the Indian government in 2022 after decades of state ownership.

The carrier has since been integrating operations, expanding its fleet, and competing against IndiGo, which dominates the Indian market with over 60% share.

Chandrasekaran told employees the airline was facing a "challenging time," without elaborating, and asked staff to focus on cost discipline and execution.

Air India competes on international routes with airlines such as Emirates, Qatar Airways and Lufthansa, while facing pressure domestically from low-cost rivals.

The airline, like its peers, is facing hard times as the war in West Asia has upended its international business. Air India is losing cash, with the conflict sparking a sharp rise in jet fuel prices while it continues to take longer diversions for flights to the West due to the closure of airspace over Pakistan and the Gulf.