Air India is seeking additional financial support from shareholders after reporting a $2.4 billion annual loss, even as it moves to expand its international network through a new partnership with Canada’s WestJet.
The airline said it has entered into an interline agreement with WestJet, allowing passengers to book single-ticket journeys connecting flights between India, Canada and the United States via Toronto and Vancouver.
The deal opens access to more than 30 onward destinations across North America. “Canada continues to be a key market for Air India… we are making travel across North America more accessible and effortless,” said Nipun Aggarwal, the airline’s chief commercial officer. WestJet executive John Weatherill added the partnership would “significantly expand access between India and Canada” and improve the overall passenger journey.
The network expansion comes as the airline faces mounting financial and operational pressures. Air India is in discussions with shareholders, including Singapore Airlines, which holds a 25.1% stake, over a potential capital injection following the steep loss in its latest financial year. Singapore Airlines chief executive Goh Choon Phong met Tata Group leadership in Mumbai on April 16 to discuss the situation, as the airline searches for a new chief executive after the resignation of Campbell Wilson.
Air India’s challenges have been compounded by factors, such as soaring fuel costs linked to the Middle East crisis and the prolonged closure of Pakistani airspace, which has forced costly rerouting of long-haul flights. The airline is also still dealing with the aftermath of the fatal Air India Flight AI171 crash, which led to significant operational disruption and reputational damage.
Despite these headwinds, the airline continues to push ahead with its transformation strategy, with the WestJet partnership highlighting efforts to grow its long-haul network and improve connectivity as it works to stabilise its financial position.