Air India asked for help of Rs 10 thousand crores: Airline will upgrade old things; Situation worsened after Ahmedabad crash

Air India has sought financial support of $ 1.14 billion i.e. about Rs 10 thousand crore from its owners Tata Sons and Singapore Airlines. This request has come after the crash in Ahmedabad in June, in which a total of 261 people, including 241 passengers, died.

According to Bloomberg report, the company wants these funds to overhaul its systems and services. That is, to thoroughly examine, repair and upgrade old things. Tata Sons has 74.9% stake. Singapore Airlines keeps the rest.

The owners will decide whether it will be an interest-free loan or equity. Financial assistance will be as per the share of Tata Sons and Singapore Airlines. After the crash, the company is focusing on improving internal practices. The CEO promised this week that things will get better.

The airline is far from the goal of eliminating losses

Air India is far from the target of eliminating its losses by the end of March. This demand for financial support reflects the difficulties in the aviation sector, where many airlines have gone out of business due to lack of funding. Sector leader IndiGo is the only profitable airline.

The situation of the airline was worsening since June.

The airspace was restricted after the conflict with Pakistan in May. Due to this, west-bound non-stop flights from India had to take longer routes. This has also affected the profits of Air India. The situation worsened after the crash on June 12.

After this crash of Boeing 787 Dreamliner, India’s aviation regulator audited the entire system due to safety concerns. In such a situation, Air India had to reduce its international flights by about 15%. This also affected the airline’s earnings.

Tata is trying to revive the airline

Government company Air India became private from 27 January 2022. Tata Sons had taken over Air India. After this it became the second largest airline of the country. After the acquisition of 2022, Tata is trying to revive its airline.

Under this, the company has changed the logo and livery of Air India. Now Air India planes fly with a new makeover. With this new makeover, Air India wants to compete with carriers like Emirates and Qatar Airways.

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