Air India Tightens Spending As A Turnaround Test Looms

Air India is tightening spending as it faces a major turnaround challenge, with costs rising from disruptions across routes and the knock-on effects of Middle East conflict and Pakistan’s airspace restrictions. The airline is also under pressure to rebuild trust in its safety practices after a fatal crash in June 2025 and Reuters reported compliance lapses. Reuters says shortages of seats and other parts have slowed cabin upgrades, and Air India is considering deferring delivery of hundreds of planes on order. Against that backdrop, Reuters reported in August that the carrier sought about $1.5 billion of fresh equity from owners Tata Sons and Singapore Airlines, suggesting the turnaround could remain capital-intensive and affect Singapore’s own earnings and cash flow.