Singapore Airlines Defends Air India Stake Amid Heavy Losses

Singapore Airlines (SIA) has reaffirmed its long-term commitment to Air India, in which it holds a 25.1% stake, despite reports that the Indian carrier has become a financial burden. Air India is currently seeking approximately $1.5 billion in fresh equity from its owners, Tata Sons and SIA, to fund a multi-year operational transformation. SIA's board is evaluating the request under a disciplined capital allocation framework, with its potential contribution estimated at $375 million.

The investment has caused significant financial strain, with SIA recording roughly S$1.3 billion in operating losses linked to the stake over the last two years, contributing to the airline's first quarterly loss since 2022. Air India reported combined losses of $2.33 billion for the year ending March 2026. SIA attributed these struggles to external factors, including high fuel prices, the depreciation of the Indian rupee, the closure of Pakistan airspace since April 2025, and a fatal aircraft crash in June 2025.

Temasek Holdings, the sovereign wealth fund and majority shareholder of SIA, has backed the investment as a strategic move to access the fast-growing Indian market. This position has drawn criticism from Singaporean lawmaker Kenneth Tiong, who argued that Temasek's funds should not be used to prop up the loss-making carrier. Temasek officials responded that the transformation of Air India is a complex process that is not expected to be linear.