A plane plan for China to consider: Singapore opposition slams Temasek over Air India bailouts

Air India faces mounting losses and requests for additional funds from its shareholder. The airline is grappling with high fuel prices and geopolitical conflicts impacting flights. Negotiating airspace access with China and Russia could offer a ...

ET Bureau
Air India’s rising losses amid costly fuel and airspace disruptions highlight the need for additional funding and new international flight routes. (Representative Image)
It's no surprise that Air India's mounting losses and request for additional funds have riled up the likes of Singapore's opposition leader Kenneth Tiong, who is baulking at future bailouts by Temasek through Singapore Airlines (SIA). Temasek, Singapore's multinational investment firm, is SIA's largest shareholder. SIA, in turn, owns a fourth of Air India, already facing turbulence after the June 2025 crash, high jet fuel prices, wars in West Asia and Europe, and airspace blockades.

The upcoming New Delhi BRICS summit may be the unlikely, but best, platform to negotiate better deals to use Chinese - and Russian - airspace, especially for long-haul flights. China and India are cautiously traipsing to stabilise relations. Direct flights between the two resumed last October, ending a 5-yr suspension.

Read more: Air India Express unveils new cultural heritage inspired uniforms for cabin crew & frontline staff


A regulatory relief to offset Pakistan's airspace blockade can create a new waypoint that's only a minor detour with minimum distance penalty. It will suit Air India the most. Its existing wide-bodied 787s, 777s, and incoming A-350s are best suited for executing this high-altitude turn over the Himalayas, east of Pakistan.

This selective blockade on Indian carriers since 2025, Iran and Iraq shutouts during peak escalation of the West Asian conflict, and soaring fuel bills are hurting India's aviation industry. Planes are flying longer, incurring higher fuel burn and paying more for it. Throw in added maintenance cost, passenger inconvenience and secondary knock-on effects, and the entire network goes into a tailspin. Having the largest US- and Europe-centric long-haul fleet, Air India has been hit much more than global rivals flying through Pakistan, and bypassing a direct West Asian conflict zone.

Read more: Air India receives delivery of fourth custom made B787-9 Dreamliner as VT-AWD lands in Delhi
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Flying over the Himalayas may not be an all-encompassing fix-it. Technical challenges persist. Planes need special certification and specifications to handle flying over such trying terrain. Yes, it will come at the cost of passenger payloads. But the high trade and tourism potential between China and India can soften that blow.
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