SIA commits to long-term growth of Air India, to evaluate additional capital infusion
Stating that India is projected to be the world’s third-largest economy by 2030, SIA said the country is the world’s third-largest aviation market by passenger traffic, and is expected to treble by 2044 from 2024 levels
With question marks being raised on Air India’s future amidst mounting losses and delay in it’s turnaround plan, Singapore Airlines (SIA) has reposed it’s long-term commitment for Air India in which it holds 25.1% stake.
It said its investment in Air India received the full attention of its board and any requests for additional capital for Air India will be evaluated under the group’s disciplined capital allocation framework.
This is considering Air India’s business strategy, the group’s operating cash flow and the investment requirements for new aircraft and products, SIA said in a Letter to the Editor of the Singapore based The Business Times .
The publication has come out with an article “Singapore Airlines faces some bleak choices as it lies trapped in Air India’s money pit.”
It suggested if SIA should just cut its losses and walk away from Air India when additional equity infusion of $1.5 billion has been needed out of which $375 million to come from SIA.
In last fiscal, the majority Tata owned airline had suffered losses of over ₹20,000 crore and losses are mounting causing concern.
Tata Sons board reportedly asked Chairman N. Chandrasekaran among other loss-making companies to arrest losses at Air India.
“The 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 said in it’s response to The Business Times article.
It said Vistara was set up as a joint venture with Tata Sons in 2013. Following Vistara’s consolidation into Air India in November 2024, SIA holds a 25.1% 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,” it said.
“Today, we are the only non-Indian airline group with a direct stake in this important and fast-growing market,” it emphasised.
Stating that India is projected to be the world’s third-largest economy by 2030, SIA said the country 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,” it said.
“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,” SIA 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,” it added.
It stated that 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,” SIA pointed out.
“Nonetheless, Air India is making tangible progress across its customer experience, fleet renewal, network growth and operational performance,” it said.
Highlighting that Air India continues to take delivery of new aircraft and retrofitting existing aircraft to enhance the customer offering, it said “this approach supports sustainable growth for the SIA Group and long-term shareholders returns.”