Singapore Airlines may lay out this one condition for fresh funding in Air India
Singapore Airlines said its board would carefully evaluate any request for additional capital, taking into account Air India’s business strategy, the group’s operating cash flow and other capital requirements.
- Sep 9, 2026,
- Updated Sep 9, 2026 3:15 PM IST
Singapore Airlines is expected to seek greater influence over Air India’s management and stronger governance rights before approving a fresh capital injection into the Indian carrier. This comes as Air India sought about $1.5 billion in fresh equity from its owners Singapore Airlines that holds 25.1 per cent and Tata that owns the rest.
According to a report in Reuters that cited two people familiar with the matter, the proposed conditions, which would be negotiated with Air India’s majority owner Tata Sons, could include greater voting power on the board and requirements for the airline to narrow its losses, the people said. Tata has reportedly already approved a $1.1 billion capital infusion, representing its pro-rata share.
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Temasek, Singapore Airlines’ majority shareholder, would neither provide the capital itself nor intervene in Air India-related decisions, the report said. The onus for setting safeguards, governance expectations and performance targets for any additional investment would lie with Singapore Airlines, it said.
Singapore Airlines said its board would carefully evaluate any request for additional capital, taking into account Air India’s business strategy, the group’s operating cash flow and other capital requirements.
The push for tougher terms comes as Singapore Airlines faces pressure to justify further investment in Air India, which posted a $2.33 billion loss in the financial year ended March, directly weighing on the Singaporean carrier’s profits.
Singapore Airlines currently has limited formal influence over Air India. Under the 2022 merger agreement that brought its 49%-owned Indian carrier Vistara into Air India, it received one board seat, held by its CEO Goh Choon Phong. Its stake above 25%, however, allows it to block special resolutions covering major corporate matters, including mergers, share buybacks and voluntary winding up.
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Tata said in July that Air India’s turnaround could take up to a decade. The airline has since appointed former Ethiopian Airlines chief Tewolde Gebremariam as CEO, replacing former Singapore Airlines executive Campbell Wilson.
Singapore Airlines said its investments in India have been and will continue to be funded through internal resources. It had S$10.48 billion in cash reserves and S$3.24 billion in undrawn credit lines at the end of June.
Temasek has publicly backed Singapore Airlines’ investment in Air India, saying it takes a long-term view of the decision.
Singapore Airlines is expected to seek greater influence over Air India’s management and stronger governance rights before approving a fresh capital injection into the Indian carrier. This comes as Air India sought about $1.5 billion in fresh equity from its owners Singapore Airlines that holds 25.1 per cent and Tata that owns the rest.
According to a report in Reuters that cited two people familiar with the matter, the proposed conditions, which would be negotiated with Air India’s majority owner Tata Sons, could include greater voting power on the board and requirements for the airline to narrow its losses, the people said. Tata has reportedly already approved a $1.1 billion capital infusion, representing its pro-rata share.
MUST READ | ‘Must stay the course during turbulence’: Singapore defends investment in Air India
Temasek, Singapore Airlines’ majority shareholder, would neither provide the capital itself nor intervene in Air India-related decisions, the report said. The onus for setting safeguards, governance expectations and performance targets for any additional investment would lie with Singapore Airlines, it said.
Singapore Airlines said its board would carefully evaluate any request for additional capital, taking into account Air India’s business strategy, the group’s operating cash flow and other capital requirements.
The push for tougher terms comes as Singapore Airlines faces pressure to justify further investment in Air India, which posted a $2.33 billion loss in the financial year ended March, directly weighing on the Singaporean carrier’s profits.
Singapore Airlines currently has limited formal influence over Air India. Under the 2022 merger agreement that brought its 49%-owned Indian carrier Vistara into Air India, it received one board seat, held by its CEO Goh Choon Phong. Its stake above 25%, however, allows it to block special resolutions covering major corporate matters, including mergers, share buybacks and voluntary winding up.
MUST READ | Air India nears $1.1 billion financial support from Tata, Singapore Airlines
Tata said in July that Air India’s turnaround could take up to a decade. The airline has since appointed former Ethiopian Airlines chief Tewolde Gebremariam as CEO, replacing former Singapore Airlines executive Campbell Wilson.
Singapore Airlines said its investments in India have been and will continue to be funded through internal resources. It had S$10.48 billion in cash reserves and S$3.24 billion in undrawn credit lines at the end of June.
Temasek has publicly backed Singapore Airlines’ investment in Air India, saying it takes a long-term view of the decision.