Singapore Lawmaker Questions SIA's Investment In Air India As Airline Seeks $1.5 Billion Bailout

Air India’s financial difficulties could become a subject of debate in Singapore’s parliament after an opposition lawmaker questioned the rationale behind Singapore Airlines’ continued investment in the Tata Group-owned carrier.

According to a report by The Economic Times, Workers’ Party MP Kenneth Tiong Boon Kiat has raised concerns over any potential use of government-linked funds to support Air India through Singapore Airlines (SIA), which owns about 25% of the Indian airline.

Tata Group holds the remaining 75% stake, while Temasek Holdings, Singapore’s state-owned investment company, is SIA’s largest shareholder.

Singapore lawmaker questions Air India funding

In a letter to Singapore Transport Minister Jeffrey Siow, Tiong asked whether Air India’s losses had been assessed in relation to SIA’s ability to maintain essential transport services. He has requested an oral response during the September 8 parliamentary session.

Tiong argued that Singapore taxpayers should not indirectly bear the cost of supporting Air India and said SIA should finance its investment independently if it chooses to continue backing the Indian carrier.

The comments came after reports that Air India has sought approximately $1.5 billion in fresh equity from Tata Sons and SIA. The proposed capital infusion could be provided in stages, with SIA expected to contribute according to its shareholding.

SIA faces mounting costs from Air India

Singapore Airlines’ exposure to Air India has already resulted in significant financial losses. SIA has reportedly recorded around S$1.3 billion ($780 million) in operating losses linked to the investment over the past two years.

SIA also reported its first quarterly net loss since 2022, despite achieving record revenue. Higher jet fuel costs, partly linked to the US-Iran conflict, and Air India’s weak financial performance contributed to the result.

SIA invested in Air India in November 2024 following the merger of Vistara with the Indian carrier. It subsequently contributed an additional S$822 million in 2024 and injected another S$167 million the following March, taking its total capital investment to about S$989 million.

The proposed funding round could therefore further increase scrutiny over the Singapore airline’s long-term commitment to Air India.