6 days ago
Singapore Airlines Weighs More Funding for Loss-Making Air India
Air India is trying to become a stronger airline, but it is losing a lot of money.
It has asked its owners for about $1.5 billion more.
Singapore Airlines owns 25.1% of Air India and may be asked to contribute money.
Singapore Airlines says it will study the request carefully before deciding.
The airline must also consider its own needs, including buying new planes.
Air India has been hurt by closed airspace, conflict-related problems, expensive fuel and a plane crash.
A Singapore opposition politician says public investment funds should not be used to keep supporting Air India.
Air India’s chairman says rebuilding the airline could take five to ten years.
Singapore Airlines said its board will carefully consider any request for additional capital from Air India.
Air India has reportedly sought about $1.5 billion from shareholders Tata Sons and Singapore Airlines.
The airline is facing losses amid its transformation program, airspace closures, conflict-related disruptions and high fuel prices.
Singapore opposition MP Kenneth Tiong questioned whether further investment could expose Temasek and Singaporean public funds to losses.
Singapore Airlines’ 2025-26 profit fell 57%, while Air India reported losses of about Rs 27,000 crore.
- Who
- Air India, its shareholders Tata Sons and Singapore Airlines, and Singapore opposition MP Kenneth Tiong.
- What
- Air India is seeking about $1.5 billion in additional shareholder capital, while Singapore Airlines considers whether to participate.
- Where
- The issue involves Air India in India and Singapore Airlines and Temasek in Singapore.
- When
- The comments were made on Thursday; Tiong said he submitted a question for Singapore Parliament’s September 8 sitting.
- Why
- Air India is funding a costly transformation while facing losses linked to airspace closures, West Asia conflict-related disruptions, high fuel prices, foreign-exchange fluctuations and a plane crash.
Support Continued Investment
Question Further Investment
Air India’s transformation
Support Continued Investment
Singapore Airlines says it works with Tata Sons to support Air India’s transformation and will evaluate additional funding as part of its long-term business strategy.
Question Further Investment
Kenneth Tiong argues that no one, including Singaporeans, owes Air India continued support and says further investment should not rely on Temasek’s funds.
Use of shareholder capital
Support Continued Investment
Singapore Airlines says capital allocation will be assessed alongside operating cash flow, aircraft and product investments, and other multi-hub investments.
Question Further Investment
Tiong says any decision should consider Singapore Airlines’ ability to provide essential transport services and whether its designated status creates a notification duty.
Time needed for recovery
Support Continued Investment
N Chandrasekaran says rebuilding Air India into a globally respected airline is a five- to ten-year process that cannot be judged quarter by quarter.
Question Further Investment
Tiong highlights Air India’s heavy losses, Singapore Airlines’ weaker results and uncertainty over the long-term costs of continuing the investment.
Key facts
- Singapore Airlines stake
- Singapore Airlines owns 25.1% of Air India.
- Requested funding
- Air India has reportedly sought about $1.5 billion from Tata Sons and Singapore Airlines.
- Air India annual losses
- Air India reported losses of around Rs 27,000 crore for the year cited.
- Singapore Airlines profit
- Singapore Airlines’ 2025-26 profit fell 57% year on year to the equivalent of about Rs 9,000 crore.
- Singapore Airlines quarterly result
- Singapore Airlines posted an April-June loss equivalent to about Rs 570 crore.
- Transformation timeline
- Tata Sons chairman N Chandrasekaran described Air India’s rebuilding as a five- to ten-year journey.
- Air India ownership change
- The Tata group took over Air India from the government in January 2022.
Quotes
Singapore Airlines spokesperson
Spokesperson for Singapore Airlines
“As a significant minority shareholder, Singapore Airlines works with Tata Sons to support Air India’s transformation programme. SIA’s Board will carefully consider any requests for additional capital from Air India, taking into consideration the Group’s other capital requirements and Air India’s business strategy.”
indianexpress.com
“I will not support, nor expect, any future use of Temasek’s funds to prop up Air India via Singapore Airlines.”
indianexpress.com
Sources
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