Why Air India's funding call has come under political scrutiny in Singapore

Air India's request for about $1.5 billion in funds from its owners - Tata Sons and Singapore Airlines - has sparked a debate in Singapore over state investor Temasek's exposure to the Indian carrier.

A government minister said the news of the funding request had prompted anti-Indian abuse online, and asked police to examine the comments.

Also read: Air India’s $1.5 billion funding ask sparks backlash in Singapore parliament


Here are the key facts:

AIR INDIA'S FUNDING REQUEST

Air India has approached India's Tata Group and Singapore Airlines about equity funding months ‌after the second-largest ⁠Indian ⁠airline and its budget arm posted a record annual loss of $2.33 billion, Reuters reported last month.

While Tata is the majority owner, Singapore ​Airlines, which is itself majority-owned by state investor Temasek, holds 25.1% of Air India and has booked its share ​of the Indian carrier's losses.

WHY HAS THE REQUEST SPARKED POLITICAL SCRUTINY?

Opposition Workers' Party lawmaker Kenneth Tiong said in a social media post a day after the Reuters report that Temasek's funds should not be ​used to prop up Air India via Singapore Airlines.

Temasek owns and manages ⁠its own ‌assets and its reserves form part of Singapore's national reserves, which, Tiong argued, ​made Singaporeans indirectly ​stakeholders in the flag carrier.

The government has come out in strong defence of ⁠Singapore Airlines, and the matter was discussed in parliament on Tuesday.

Transport ​Minister Jeffrey Siow said investment decisions belonged to Singapore Airlines' board and ​that Singaporeans were not paying for the Air India investment. Siow also said Singapore Airlines had not sought further capital from shareholders.

Air India and Tata have not commented publicly on the funding request.

Also read: Singapore Airlines says tangible progress made in Air India's fleet renewal, service enhancements

HOW HAVE TEMASEK AND SINGAPORE AIRLINES REACTED?

Temasek has said it views Singapore Airlines' investment in Air India from a long-term perspective and supported it.

Singapore Airlines on Tuesday said that its investments in India have been and will ‌continue to be funded through internal resources, subject to board approval and a disciplined capital allocation framework. It described the stake as a long-term strategic commitment aligned with ​its multi-hub strategy.

WHY ​HAS IT STOKED RACIST ABUSE?

Senior ⁠Minister K. Shanmugam said over the weekend that news of the funding request had prompted anti-Indian abuse online, including suggestions that Temasek chief executive Dilhan Pillay Sandrasegara favoured Air India because of his Indian ethnicity. Shanmugam called such comments libellous and said the CEO was as Singaporean as anyone else.

Temasek did not respond to a request for comment.

Shanmugam said he had asked police to examine those comments and separate remarks about Singaporeans missing in flash floods abroad.

Prime Minister Lawrence Wong has also condemned the abuse, saying that seemingly legitimate arguments should not be used as cover for prejudice against any community or hostility towards foreigners.