Singapore Airlines seeks more control over Air India before new investment

Singapore Airlines is seeking increased governance rights and greater management influence as a condition for providing additional capital to Air India. The airline, which holds a 25.1 percent stake in the Indian carrier, is negotiating these terms with Air India’s majority owner, Tata Sons.

Air India requires approximately USD 1.5 billion in fresh equity to fund fleet modernization, cabin upgrades, and network expansion. While Tata Sons has already approved a USD 1.1 billion infusion representing its pro-rata share, Singapore Airlines is demanding stronger board voting power, oversight of strategic investment decisions, and closer control over operational cash flow.

The push for stricter conditions follows significant financial losses at Air India, which reported a USD 2.33 billion loss for the fiscal year ending March. This performance has pressured Singapore Airlines, backed by the sovereign wealth fund Temasek, to justify its continued investment in a turnaround process that Tata Sons estimates could take up to a decade.