Air India investment funded internally, represents long-term strategic commitment: SIA
The airline says its financial position is ‘one of the strongest’ in the industry
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[SINGAPORE] Singapore Airlines’ (SIA) investments in India are funded through the airline’s internal resources, and will continue to be so, as a long-term strategic commitment, an SIA spokesperson said on Tuesday (Sep 8).
This follows a 20-minute exchange in Parliament between Minister for Transport Jeffrey Siow and Workers’ Party MP Kenneth Tiong on issues relating to the national carrier’s minority stake in the loss-making Air India.
The airline said that its investment in Air India is aligned with its multi-hub strategy, enabling direct participation in a key growth market outside Singapore.
Air India had reportedly sought from shareholders a fresh equity injection of US$1.5 billion in August, after posting a US$2.3 billion loss in March, more than double the previous year’s losses.
The spokesperson added that requests for additional capital from Air India are evaluated under the group’s capital allocation framework, which considers the Indian airline’s business strategy, along with SIA’s operating cash flow and investment requirements for new aircraft and products.
SIA noted that its financial position is “one of the strongest” in the airline industry as at Jun 30, 2026, with cash reserves totalling about S$10.4 billion, comprising S$9.1 billion in cash and bank balances and S$1.4 billion in fixed deposits.
It also has S$3.2 billion in committed lines of credit that remain undrawn.
“The Air India investment receives the full attention of the SIA board,” said the spokesperson.
SIA has held a 25.1 per cent stake in Air India Group since November 2024, after Vistara – SIA’s 2013 joint venture with Tata Sons – was consolidated into the group.
This stake enables SIA to directly participate in the Indian airline market, while facilitating deeper commercial cooperation between the two airlines, the spokesperson said.
The investment has also strengthened the “complementary roles” of Singapore and India as international aviation hubs.
“Air India has a strong presence in both the Indian full-service and low-fare airline segments, as well as the domestic and international markets,” the spokesperson said.
“This gives Singapore greater access to India’s vast and fast-growing aviation market, while connecting India more extensively through Singapore to Changi Airport’s global network.”
The statement noted that SIA remains the only non-Indian airline group with a direct stake in India’s airline market.
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