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.
(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, statement comes amid concerns over SIA’s investment in the loss-making aviation giant, it added.
‘View business decision from long-term perspective, are supportive’
Temasek said SIA has explained its interest in investing in a second hub to secure long-term growth beyong the local 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”.
Why are concerns raised over SIA’s investment in Air India?
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 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 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.
Temasek says it recognises the challenges
PTI reported that sources earlier this week said Air India is planning to seek additional funds to the tune of $1.5 billion, which is over ₹14,000 crore at the current exchange rate.
On Saturday, Temasek also said it recognises that the large-scale transformation of involves complex, multi-year operational and integration challenges.
“Efforts of this scale take time and are not expected to be linear, particularly in the aviation sector, where outcomes are shaped by industry developments, including aircraft innovation and fleet renewal cycles, and external factors such as airspace disruptions, geopolitical developments, and fuel price volatility,” it added.
Meanwhile, on August 27, Singapore Airlines 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.
‘Air India’s transformation must be seen as 5-10 year journey’
N , Chairman of Tata Sons and Air India in July, said Air India’s transformation journey must be seen as a five- to ten-year journey considering the years-long supply chain disruptions in key components, the need to overhaul the legacy systems, culture, fleet and creation of a large cadre of airline professionals.
Earlier this month, Chandrasekaran announced he would step down as Tata Sons Chairman when his current term ends in February 2027.
In the Facebook post earlier this week, Kenneth Tiong Boon Kiat also said that no one, least of all Singaporeans, owes Air India a living.
“I will not support, nor expect, any future use of Temasek’s funds to prop up Air India via Singapore Airlines. If Singapore Airlines wants to continue its bet on Air India, it should do so on its own two feet, and not on ,” he had said.
Kenneth Tiong Boon Kiat said he has also filed a question for oral answer from Singapore’s Minister of Transport on whether these losses have been assessed against SIA’s capacity to provide essential transport services, and whether they engage the notification duty that comes with SIA’s designated status under the Civil Aviation Authority of Singapore Act.
The question is scheduled to be taken up during Parliament’s sitting on September 8.
(With inputs from PTI)