New Delhi, Sep 8 (PTI) The Singapore government on Tuesday defended Singapore Airlines’ investment in Air India, saying through the Indian carrier, the airline gains gains deeper access to one of the largest aviation markets in the world by passenger traffic and stressed that “many overseas returns will not necessarily emerge immediately”.
The remarks were made by Singapore’s Minister of Transport Jeffrey Siow in response to concerns raised by Parliamentarian Kenneth Tiong Boon Kiat regarding Singapore Airlines’ investments in loss-making Air India.
Singapore Airlines owns a 25.1 per cent stake in Air India, and the remaining shareholding is with Tata Sons, which acquired the Indian airline from the government in January 2022.
In his reply to the
Singapore Parliament on Tuesday, Jeffrey Siow said Singapore Airlines (SIA) is a listed company that funds its investments from its own balance sheet and earnings, and has more than SGD 10 billion in cash reserves and over SGD 3 billion in undrawn credit facilities.
“SIA has not sought further capital from its shareholders. And if it were to do so, that would be a commercial matter between the company and its shareholders,” the minister said, adding that the member has insinuated that Singaporeans are somehow paying for the Air India investment, which is not the case.
According to the minister, the reasoning behind SIA’s investment is not hard to follow and that a large share of the airline’s air traffic today comprises transfer or transit passengers.
“To grow further, SIA must expand overseas, because there is a limit to how many people will ever fly to and from Singapore. But accessing overseas markets is not straightforward, because aviation is a highly nationally sensitive sector. Air traffic rights and airport slots often depend on who your partner is,” he said.
Through Air India, the minister said SIA gains deeper access to one of the largest aviation markets in the world by passenger traffic, and a strategic location for onward connections to Europe and West Asia.
“Many overseas returns will not necessarily emerge immediately,” he said and added that whether its specific investment in Air India proves valuable is for SIA and its shareholders to answer.
He also asserted that at present, SIA’s ability to serve Singaporeans is not adversely affected.
Last month, sources said Air India is planning to seek additional funds to the tune of USD 1.5 billion.
On August 29, Singapore’s sovereign wealth fund Temasek, a stakeholder in SIA, said it supports the airline’s investments in Air India and highlighted that the Indian carrier’s large-scale transformation involves complex, multi-year operational and integration challenges.
“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,” it had said.
Temasek had also said as a shareholder of SIA, “we view their business decision from a long-term perspective and are supportive of it”.
On August 27, SIA said its board will carefully consider Air India’s any requests for additional capital after taking into consideration the group’s other capital requirements, as well as the Indian carrier’s business strategy.
Singapore Airlines Group’s net profit dropped 57 per cent to SGD 1.184 billion (nearly Rs 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 Rs 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. PTI RAM TRB
/images/ppid_59c68470-image-178885255264218033.webp)
/images/ppid_59c68470-image-178888256006582560.webp)
/images/ppid_59c68470-image-17888650784866886.webp)
/images/ppid_59c68470-image-178884252695163853.webp)
/images/ppid_59c68470-image-178880002466629334.webp)
/images/ppid_59c68470-image-178883256346566476.webp)
/images/ppid_59c68470-image-178876005774744622.webp)