Singapore government defends Singapore Airlines investment in Air India

Singapore’s Transport Minister Jeffrey Siow defended Singapore Airlines’ 25.1% stake in Air India during a parliamentary session, arguing that the investment is a strategic necessity for growth. Siow explained that because there is a limit to the number of passengers flying directly to or from Singapore, the flag carrier must expand its presence in major overseas markets to sustain growth.

Addressing concerns regarding Air India’s widening losses during its multi-year turnaround, Siow noted that overseas investment returns are not always immediate. He clarified that Singapore Airlines is a listed company that funds such investments through its own balance sheet and internal resources, rather than seeking additional capital from shareholders or using taxpayer funds. The airline currently maintains over SGD 10 billion in cash reserves and SGD 3 billion in undrawn credit facilities.

Air India is primarily owned by Tata Sons, which acquired the carrier from the Indian government in 2022. Singapore Airlines stated that its involvement in India is part of a long-term multi-hub strategy and is subject to a disciplined capital allocation framework.