Air India seeks about Rs 10,000 crore financial support from owners: Report

New Delhi, Oct 31 (IANS) Air India is reportedly seeking Rs 10,000 crore ($1.14 billion) in financial aid from its owners Tata Sons and Singapore Airlines, as it fights multiple issues such as the deadly crash in Ahmedabad in June and airspace restrictions owing to India-Pakistan military confrontations in May.

The Air India’s request for financial help includes funding to upgrade its systems and services and to build in-house engineering and maintenance departments, according to a report from Bloomberg, citing sources.

Air India was yet to comment on the report.

While the Tata Group has a 74.9 per cent stake in the carrier, the remaining is held by Singapore Airlines.

Air India is expected to incur losses worth Rs 4,000 crore after Pakistan's airspace restrictions.

Air India's Managing Director and Chief Executive Officer (CEO), Campbell Wilson, said earlier this week that the preliminary investigation report by the Aircraft Accident Investigation Bureau (AAIB) on the AI-171 crash found no fault with the airline’s operations or practices.

Speaking at the ‘Aviation India 2025’ summit, Wilson said the July report concluded there was “nothing wrong” with Air India’s procedures or aircraft maintenance that required any changes.

However, he added that the airline continues to introspect and improve its systems. “Anything that happens in the industry, whether that’s us or others, is a cause for introspection. It’s a cause for reviewing practices,” Wilson said.

“The interim report indicated that there was nothing wrong with aircraft engines or practices that required changing. But, of course, we're always looking at how we can keep improving, keep getting better, and keep learning,” he added.

The comments came in the backdrop of the tragic Air India Flight AI-171 crash on June 12. The Boeing 787 Dreamliner, flying from Ahmedabad to London, crashed into a college building shortly after takeoff, killing 241 people on board and leaving only one survivor.

The AAIB’s preliminary report, released on July 12, revealed that fuel supply to both engines was cut off shortly after takeoff.

—IANS

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