Singapore Airlines to carefully consider fund infusion in loss-making Air India
Explaining its investment rationale, SIA said its stake in Air India provides direct access to the country's domestic aviation market and international traffic flows through Indian hubs, complementing its Singapore hub.
Delhi/Mumbai: Singapore Airlines (SIA), which owns a quarter of Air India, said it would “carefully consider any requests for additional capital” from the Tata Group airline, marking its first public indication of a willingness to infuse fresh funds into the loss-making carrier.
The Singapore flag carrier also reaffirmed its long-term commitment to its 25.1% stake in Air India.
"The 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," SIA said in a regulatory filing on Monday.
In the filing, the airline responded to queries from the Securities Investors Association (Singapore), or SIAS, a registered charity and one of Asia’s largest investor lobby groups, as well as questions from shareholders ahead of its annual general meeting on 24 July.
Investors, including SIAS, have questioned the rationale behind Singapore Airlines' investment in Air India, in view of mounting losses at the Indian carrier.
Explaining its investment rationale, SIA said its stake in Air India provides direct access to the country's domestic aviation market and international traffic flows through Indian hubs, complementing its Singapore hub.
"The SIA Group is also the only non-Indian airline group with a direct stake in this important and fast-growing market," it said.
SIA said its capital allocation follows "a disciplined evaluation process" that considers operating cash flow, investment requirements in new aircraft and products, as well as strategic investments such as Air India.
Air India and Singapore Airlines had yet to respond to queries from Mint.
"Singapore Airlines' language suggests a more measured approach to future capital commitments. Rather than signalling automatic support, it is indicating that any fresh funding request from Air India will be evaluated against the group's broader capital needs and Air India's business strategy. That is a reasonable stance for a shareholder seeking greater accountability on returns,” said Gagan Dixit, senior vice-president, oil & gas and aviation at brokerage firm Elara Securities.
The comments come after Singapore Airlines' FY26 net profit more than halved, largely due to its share of losses from Air India. The airline recognised a share of losses of 945.2 million Singapore dollars (about US$742.4 million) from its investment in Air India.
According to SIA's annual report filed in May, Air India is expected to report a loss of about $3.76 billion Singapore dollar (around US$3 billion or ₹28,400 crore) for FY26, nearly three times its estimated FY25 loss. Privately-held Air India is expected to file its earnings with the ministry of corporate affairs next month.
"This should not be interpreted as a sign that Singapore Airlines is pulling back. It is more a reflection of prudent capital allocation. Investors naturally want to see operational improvements, a clearer path to profitability and evidence that previous investments are delivering results before approving fresh capital,” Dixit said.
FY26 losses at Air India, the country’s second-largest carrier with a 25% market share, are expected to be more than 10 times those of market leader IndiGo, operated by InterGlobe Aviation, which reported a net loss of ₹2,400 crore.
The airline is also preparing for a leadership transition, with chief executive Campbell Wilson set to step down in September. The airline is still looking for his replacement. Air India has brought back former chairman and managing director Pradeep Singh Kharola to its senior management team, signalling the start of a planned leadership transition as Wilson departs.
Singapore Airlines acknowledged that Air India continues to face multiple headwinds, including high fuel prices, the depreciation of the Indian rupee against the US dollar, aircraft supply-chain disruptions, the continued closure of Pakistan's airspace for Indian carriers, and the AI171 crash last year.
Despite these challenges, it said Air India is making "tangible progress" in its transformation programme across customer experience, fleet and network expansion, products and services, and operational performance.
As a significant minority shareholder, SIA said it remains committed to supporting Air India's transformation alongside Tata Sons. It noted that chief executive Goh Choon Phong serves as a non-executive, non-independent director on Air India's board, enabling both shareholders to provide strategic guidance where required.
SIA also said it continues to provide aviation expertise to support Air India's transformation and unlock its long-term potential.
The shift from a 50% stake in Vistara to a 25% stake in Air India also changes the dynamics. As a minority shareholder but also as a listed entity, Singapore Airlines is likely to seek stronger governance, greater visibility on execution and clarity on how additional capital would be deployed before committing further funds, Dixit said.
Reaffirming its strategic commitment, SIA said: "SIA's 25.1% stake in the enlarged Air India Group is a pillar of the Group's multi-hub strategy." It added that the investment reflects its confidence in India's long-term aviation growth and builds on its decade-long presence in the country through Vistara, its former joint venture with Tata Sons that merged with Air India in November 2024.
About the Authors
Abhishek Law
Abhishek Law has spent 18 years in journalism, which in news industry terms means he has survived several newsroom restructurings, countless “urgent” press releases, and more cups of tea than he can reasonably count. Based in New Delhi, he covers aviation for Mint, a sector where aircraft, oil prices, geopolitics and airline CEOs regularly conspire to make his life interesting.
Most of his time gets occupied by translating airline jargon like ASKs, yields, load factors and fleet strategies into language that doesn’t require a pilot’s licence. His motto is simple: if readers need a glossary, he hasn’t done his job properly.
On most days, the quadragenarian is tracking airline strategies, policy changes and the occasional mid-air disruption that suddenly become a stock market story. When planes are behaving themselves (which is not very often nowadays), he strays into other corporate beats like steel, trying to figure out what’s really happening.
He loves to talk, especially ask—that one more question which people are uncomfortable with, and saving contacts in his phone as a "Source who may or may not pick up calls”.
But, on a serious note, the goal remains simple: cut through jargon, find that additional detail, and turn complicated business stories into something one can actually enjoy reading.
Dipali Banka
Dipali Banka is a Mumbai-based journalist who treats corporate reporting less like a beat and more like a puzzle to be solved. This invariably means she has to read through annual reports and speak with leaders and analysts. She tracks policies, deals, and the pulse of industries spanning metals, mining, paints, and cement, alongside aviation. She started out as an intern at The Statesman and then completed her postgraduate diploma in journalism from Asian College of Journalism, Chennai, in 2025. Relentlessly curious at heart, Dipali is driven by the simple urge to understand how things work and who they impact. Armed with an enduring fascination for steel and aeroplanes, she moves through the churn of daily news with focus, turning complexity into clarity without losing the story. She is particularly committed to shaping numbers into objective narratives, having little appetite for vagueness that gets in her way.
Outside the newsroom, Dipali is an unapologetically loud presence who values long conversations and longer walks to unwind. She devours books of all kinds and can often be found indulging in the lyrical sway of contemporary ghazals. She ardently believes that her relationship with her bylines is more sacred than it would ever be with anyone across the human race.
Source: Livemint — Companies
