Tata Sons to Revitalize Air India through $4 Billion Booster 

After acquiring Air India in October 2021, Tata Sons also took over Air India Express in January 2022. Now, Tata Sons Ltd plans to raise $4 billion for introducing fresh investment in Air India and refinance costly debts. 

According to a report, Tata Sons plans to raise capital through a combination of hybrid debt and equity, refinancing Air India’s debts and rejuvenating the airline, pleading anonymity. 

The group may initiate the task of hiring investment advisers, although the informal consideration is supported by some private equity funds and some foreign lenders. The lenders coming under Tata’s current banking relationships will make the debt refinancing part relatively easier.  

The report specified that Tata Sons would be making a provision of approximately ₹2,600 crores as combined losses for AirAsia India Airlines. The Competition Commission of India (CCI) approved Tata Group-owned Air India’s proposal in June 2022 for the complete take-over of the equity share capital of low-cost carrier AirAsia India.  

The reports mentioned that the refurbishment and expansion of Air India Express and Air India Ltd would confirm the orders for 200 narrow-body A320 Neo Jets and wide-body carriers.