SIA’s investment in Air India will support long-term growth
The move has enabled direct participation in the Indian market, facilitated cooperation between the carriers
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[SINGAPORE] We refer to The Business Times’ article “Singapore Airlines faces some bleak choices as it lays trapped in Air India’s money pit”.
The Singapore Airlines (SIA) Group’s investment in Air India is aligned with its long-term multi-hub strategy to enable direct participation in the growth of a key market like India.
SIA set up Vistara as a joint venture with our partner Tata Sons in 2013. Following Vistara’s consolidation into Air India in November 2024, we hold a 25.1 per cent stake in the enlarged group, which has a presence in both the Indian full-service and low-fare airline segments. It also has access to valuable slots and air traffic rights at key domestic and international airports
Today, we are the only non-Indian airline group with a direct stake in this important and fast-growing market.
India is projected to be the world’s third-largest economy by 2030. It is the world’s third-largest aviation market by passenger traffic, and is expected to treble by 2044 from 2024 levels.
This growth is being driven by an expanding middle-class population, which is already one of the world’s largest and is expected to double over the next 20 years.
Aircraft orders by Indian carriers are supported by infrastructure investments, with the country planning to more than double the number of airports to around 350 by 2047.
Beyond enabling direct participation in the Indian airline market, SIA’s investment in Air India has facilitated deep commercial cooperation between the two carriers and strengthened the complementary roles of Singapore and India as international aviation hubs.
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.
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The codeshare arrangements between the two carriers now cover 61 points across 20 countries and territories, offering customers more options and seamless connectivity.
This is supported by expanded product and service offerings, as well as greater cross-participation in both airlines’ frequent flyer and corporate travel programmes.
SIA and Tata have publicly recognised that the Air India transformation programme will take time.
In the past year, Air India has also had to contend with the prolonged Pakistan airspace closure to Indian carriers since April 2025, the impact of the tragic AI171 accident in June 2025, the depreciation of the Indian rupee against the US dollar, the loss of a key market due to the Middle East conflict, and sustained high fuel prices.
Nonetheless, Air India is making tangible progress across its customer experience, fleet renewal, network growth and operational performance. Its Net Promoter Score, which reflects how likely customers are to recommend a brand, has increased by more than 70 points since November 2022.
In May 2026, Air India received a Skytrax 4-Star Airline Rating while Air India Express was certified as a 4-Star Low-Cost Airline – on par with leading international carriers.
Air India continues to take delivery of new aircraft with its latest cabin products, and to retrofit existing aircraft to enhance the customer offering.
The Air India investment receives the full attention of the SIA board. Any requests for additional capital will be evaluated under the group’s disciplined capital allocation framework, taking into account Air India’s business strategy, the group’s operating cash flow and our investment requirements for new aircraft and products.
This approach supports sustainable growth for the SIA Group and long-term shareholders returns.
Lee Wen Fen Senior vice-president, corporate planning Singapore Airlines
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