Temasek Backs SIA's Risky Air India Bet Amid Losses

Temasek Holdings, Singapore's sovereign wealth fund, has affirmed its support for Singapore Airlines' investment in Air India. This backing comes as the Indian carrier seeks about $1.5 billion in fresh equity from its owners, Tata Sons and Singapore Airlines. Singapore Airlines holds a 25.1% stake in Air India.

The financial performance of Air India remains a concern, with the airline and its budget subsidiary reporting a combined loss of $2.33 billion for the fiscal year ending March 31, 2026. This has weighed on Singapore Airlines' overall profits.

Temasek views the strategic investment in Air India from a long-term perspective, acknowledging the complex operational and integration challenges involved in its multi-year transformation. The fund recognizes that such efforts are not linear and are subject to industry developments and external factors.

Singapore Airlines' board will carefully consider any requests for additional capital, taking into account the group's other financial needs and Air India's business strategy. The airline's revamp has been ongoing since Tata took control in 2022.