Singapore Airlines' board to retain final say on further Air India investment

Mumbai: Singapore Airlines' board will retain the final call on any further investment in loss-making Air India, with chairman Peter Seah assuring shareholders at a recent annual general meeting that decisions on additional funding haven't been delegated to management.

"The board regards Air India as a long-term investment with much potential given India's large and rising middle income population," Seah told the shareholders, according to minutes of the AGM held in July and published on SIA's website August 26, reviewed by ET. "Furthermore, it is rare for a country (India) to open its domestic market to a foreign airline shareholder (SIA)."

He said the investment in Air India has the board's "full attention" and that it would continue to review the investment and decide accordingly as the situation warrants.


ALSO READ | Air India’s $1.5 billion funding ask sparks backlash in Singapore parliament

The disclosure comes against growing scrutiny in Singapore over SIA's 25.1% stake in Air India. Opposition Workers' Party MP Kenneth Tiong has questioned whether Air India's losses have implications for SIA's ability to continue providing essential transport services. Air India is also seeking about $1.5 billion in fresh equity from Tata Sons and SIA, according to a Reuters report.

SIA CEO Goh Choon Phong said the airline continues to believe in Air India's "significant growth potential", with Tata Group as a "supportive fellow shareholder". But realising that potential "will take time and will not be easy", he said, calling on shareholders to support Air India as SIA's "new Indian growth engine".

ALSO READ | Air India seeks $1.5 billion from owners Tata Sons, Singapore Air as losses mount

Asked how much more SIA may invest and whether it had a maximum tolerance limit beyond which it could exit, Goh said the airline can't disclose its investment decisions at this stage. Any additional contribution, he said, would require a "robust business case" and remain within SIA's means.

SIA's net profit fell 57.4% to S$1.184 billion in FY26, while its share of Air India's losses for the year was S$945.2 million. Air India reported a loss of more than ₹22,000 crore.