Should SIA disclose the maximum amount it is prepared to invest in Air India?
Given that the Indian associate’s results have weighed on the Singapore group’s earnings for two consecutive quarters, more information would benefit shareholders
[SINGAPORE] Singapore Airlines’ (SIA) investment in Air India is featuring on the radar of investors after the associate’s results weighed down the Singapore group’s earnings for two consecutive quarters.
The group’s earnings for the second quarter ended September dived 82.1 per cent year on year to S$52.4 million - even though operating profit rose 22.4 per cent to S$398.4 million and revenue improved 2.2 per cent to S$4.9 billion.
The main cause behind the sharp earnings drop was SIA’s share of losses by associate Air India, a repeat of the scenario in the first quarter, when it also contributed to the group’s 58.8 per cent decline in net profit to S$186.1 million.
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