Industry Odisha Bureau, Aug 29: Singapore Airlines has reaffirmed its long-term commitment to Air India, where it holds a 25.1% stake. Additional capital requirements will now be evaluated by SIA’s board. That decision comes amid mounting Air India losses and slow turnaround progress. SIA said any funding request faces its disciplined capital allocation framework.
The airline’s response followed a Business Times article questioning SIA’s continued Air India exposure. Reports suggested Air India needed an additional $1.5 billion equity infusion overall. Of that amount, $375 million was expected to come from SIA. SIA said future decisions will weigh Air India’s strategy against operating cash flow and planned aircraft investment.
Air India posted losses exceeding ₹20,000 crore in the last fiscal year. Those losses have deepened concerns around the airline’s prolonged transformation programme. Tata Sons has reportedly pressed leadership to arrest losses across group companies. SIA and Tata have publicly acknowledged that Air India’s turnaround will take time.
SIA’s stake traces back to Vistara, its 2013 joint venture with Tata Sons. Following Vistara’s consolidation into Air India in November 2024, SIA retained 25.1% ownership. That stake spans both Air India’s full-service and low-fare airline segments. SIA called itself the only foreign carrier holding a direct India stake.
SIA linked its commitment to India’s broader long-term aviation growth story. India is projected to become the world’s third-largest economy by 2030. It is already the world’s third-largest aviation market by passenger traffic, SIA said. That market could treble by 2044 from 2024 levels, it added, citing India’s expanding middle class.
Beyond market access, SIA cited valuable airport slots and air traffic rights. The investment has deepened commercial cooperation between the two airline groups. SIA said it strengthens Singapore and India’s complementary roles as aviation hubs, connecting Indian travellers more broadly through Changi Airport’s global network.
SIA also acknowledged operational headwinds facing Air India through the past year. These included Pakistan’s prolonged airspace closure and June 2025’s AI171 accident. Rupee depreciation, Middle East-related market losses and elevated fuel costs added further pressure. Even so, SIA said Air India is showing tangible progress.
That progress spans customer experience, fleet renewal, network growth and operations, it said. New aircraft deliveries and retrofits continue supporting Air India’s broader transformation effort. SIA framed this approach as supporting sustainable growth and long-term shareholder returns, balancing near-term financial discipline against India’s longer-term strategic aviation opportunity.
