Temasek, Singapore's sovereign wealth fund, has expressed support for Singapore Airline's investments in Tata Group owned carrier Air India, stating that hurdles are due to large-scale and complex nature of integration and operations, PTI reported.
Singapore Airlines (SIA) owns 25.1% in Air India, with Tata Sons holding the remaining and majority 74.9% stake. The conglomerate acquired the airline from the Indian government in January 2022.
Notably, Temasek's statement comes amid concerns over SIA's investment in the loss-making aviation giant, it added.
Temasek supports Singapore Airlines' investment in Air India, viewing it through a long-term perspective and understanding the complex integration challenges involved.
Concerns have been raised due to Air India's request for an additional $1.5 billion in funding amidst significant operational losses, and Singapore Airlines' substantial stake in the airline.
Temasek believes that the transformation of Air India requires a long-term commitment, acknowledging that such large-scale operational changes will take time and are influenced by various external factors.
The decision on whether Singapore Airlines should invest more in Air India should consider the airline's long-term growth potential and the substantial operational hurdles it currently faces.
Air India's significant financial losses directly impact Singapore Airlines' profits and by extension, affect Temasek's investments, increasing scrutiny about the viability of future funding requests.
Temasek said SIA has explained its interest in investing in a second hub to secure long-term growth beyong the local Singapore market. “As the world's third-largest air transport market after the US and China, India is well-positioned to serve as this second hub. SIA has long participated in the India market, including an operating presence through Vistara since 2013, and its investment in Air India allows it to deepen its participation in India's aviation growth,” Temasek stated.
It added that as a shareholder of SIA, “we view their business decision from a long-term perspective and are supportive of it”.
Earlier this week in a social media post, Singapore's Member of Parliament Kenneth Tiong Boon Kiat cited a media report and flagged concerns about Singapore Airlines investing more in Air India, the report said.
“Air India has asked its owners for another $1.5 billion. Singapore Airlines owns about a quarter of it, and Temasek owns most of Singapore Airlines, so this is not only a question for private shareholders. Whichever of the two writes the cheque, it will have a significant impact on Temasek,” he stated in a Facebook post.
Singapore Airlines Group's net profit dropped 57% to SGD 1.184 billion (nearly ₹8,900 crore) in the fiscal year ended March 2026, mainly due to the absence of a prior-year one-off accounting gain related to the Vistara merger, and Air India losses.
Air India's loss stood at more than SGD 3.56 billion (over ₹26,700 crore) in the financial year ended March 2026, as the carrier grappled with the fallout of airspace curbs and other headwinds.
Figures were disclosed by Singapore Airlines Group in its annual financial report for 2025-26, released in May. The rupee figures are based on the exchange rate of May 14.
