Air India Crash: Tata Sons Mulling Trust For Affected Families, Likely To Allocate Rs 500 Crore

News18

2 days ago

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The Tata Group is reportedly planning a Rs 500 crore allocation through Tata Trusts to strengthen its relief measures after the Air India crash.
Tata Sons chairman N Chandrasekaran, in a first board meeting after the Air India plane crash, has apprised the group leadership that they would be working with its majority shareholder, Tata Trusts, for furthering the relief efforts to those affected in the tragedy.
Chandrasekaran also briefed the group leadership about the relief efforts and other aspects undertaken by the group since the fatal accident.
The nine-member board, which oversees operations of over 100 companies in the salt-to-software group, also paid condolences to the deceased at the meeting.
According to a report with the Economic Times, approvals have been sought for an estimated Rs 500 crore allocation to the trust.
Earlier, the Tata group, which owns Air India, had declared a compensation of Rs 1 crore to each of the kin of all the deceased.
As per reports, Chandrasekaran has taken direct control of Air India's daily operations.
At least 270 people, including all but one of the 242 passengers and crew members on board the Ahmedabad-London Gatwick flight AI-171, were killed after the Boeing Dreamliner crashed soon after take-off on June 12.
Tata Sons and Singapore Airlines invested Rs 9,558 crore in loss-making Air India in 2024-25, with the promoters pumping in Rs 4,306 crore alone in March this year.
The airline, being piloted by Tatas since January 2022, has embarked on an ambitious five-year transformation plan.
In November 2024, Vistara, a joint venture between Tatas and Singapore Airlines, was merged with Air India, following which the Singaporean carrier acquired a 25.1 per cent stake in Air India.
In response to queries about fundraising, an Air India spokesperson told PTI on Wednesday that its shareholders have together infused fresh capital of more than Rs 9,500 crore in 2024-25 to meet the airline's capital expenditure requirements.
Tata Sons invested Rs 3,224.82 crore, and Singapore Airlines put in Rs 6,333.18 crore in Air India, taking the total fund infusion to Rs 9,558 crore in the financial year ended March 2025.
'Pursuant to the merger of Vistara with Air India in November 2024, the shareholders have together infused fresh capital of over Rs 9,500 crore in the fiscal year 2024-25. The said infusion is to meet the company's requirement towards capital expenditure, working capital and growth initiatives," the Air India spokesperson said in a statement.
In March this year, Tata Sons pumped in Rs 3,224.82 crore, and Singapore Airlines invested Rs 1,080.68 crore in Air India, according to regulatory filings accessed by business intelligence platform Tofler.
Through the preferential allotment route, Tata Sons was issued little over 523 crore equity shares, and Singapore Airlines was allotted little more than 175 crore equity shares at a price of Rs 6.1632 apiece, the filings showed.
The equity shares, having a face value of Rs 4 apiece, were issued with a premium of Rs 2.1632 per equity share. They were allotted on March 20.
Prior to the funding in March, Singapore Airlines had invested Rs 5,252.5 crore in Air India in 2024-25.
For the nine months ended December 31, 2024, Air India Group's loss before exceptional items stood at Rs 8,033.1 crore while revenues were Rs 56,366.8 crore, as per the provisional figures mentioned in the filings.
First Published:
June 27, 2025, 09:29 IST