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. This was even though there was a 22.4 per cent rise in operating profit to S$398.4 million and a 2.2 per cent increase in revenue to S$4.9 billion for the period.
The main cause of the sharp drop in earnings was SIA’s share of the losses of associate Air India. This was a similar story 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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