People briefed on the discussions, who requested anonymity given the sensitivity, said the proposed support totals 100 billion rupees, or roughly $1.1 billion. The financing would be released in stages once Air India hits specified performance milestones. Contributions would map to current holdings, meaning Tata Sons would supply funding in line with its 74.9% stake and Singapore Airlines would cover the balance.
The carrier posted a record 220 billion rupee loss in the fiscal year that ended in March after a turbulent stretch. Results were hurt by a deadly 787 Dreamliner accident, Pakistan's closure of its airspace to Indian carriers, and turmoil in the Middle East that disrupted travel and drove fuel costs higher. The aftermath of the 787 accident took months to manage, sapping management capacity, adding expenses and damaging the brand.
Set to officially take office later this month, Chief Executive Officer-designate Tewolde Gebremariam plans to expand cargo and address aircraft maintenance problems. Noel Tata - who chairs Tata Trusts, the entity that controls Tata Sons - voiced worries over Air India's losses at multiple board sessions, according to Reuters last month. Tata Sons, which holds the majority stake in the airline, and Temasek, which is the majority owner of Singapore Airlines, have separately said they will keep supporting the carrier.
When circumstances change, patient investing still builds wealth, so get the free Always Be Buying E-Book
The Times of India published this development earlier Thursday. According to people familiar with the talks, last year the airline sought at least 100 billion rupees from its backers. Air India, Tata Sons and Singapore Airlines did not immediately respond to requests for comment.
