‘No one owes Air India a living’: Backlash in Singapore parliament as airline seeks $1.5 billion from Tata, SIA

Air India’s request for $1.5 billion in fresh equity from ‌its owners Tata Sons and Singapore Airlines might as well rock the Singaporean parliament. An opposition minister has questioned why Singapore should continue funding the airline that just two months ago posted a record loss.

Workers’ Party MP Kenneth Tiong Boon Kiat said if Singapore Airlines wants to bet on Air India, it should do so on its two feet and not on Temasek’s. Singapore Airlines owns around 25 per cent of Air India, while Tata Sons owns 75 per cent. Temasek Holdings, a multinational investment firm owned by the Singaporean government, is SIA’s largest shareholder.

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“Air India has asked its owners for another US$1.5 billion. Singapore Airlines owns about a quarter of it, and Temasek owns most of Singapore Airlines, so this is not only a question for private shareholders. Whichever of the two writes the cheque, it will have a significant impact on Temasek,” said the MP, adding that Tata Sons’ chairman said the turnaround could take a decade. “That same chairman steps down in February, after disagreements the report links partly to Air India's losses,” he said, referring to N Chandrasekaran. SIA also went into the red last quarter, he said.

“No one, least of all Singaporeans, owes Air India a living. I will not support, nor expect, any future use of Temasek's funds to prop up Air India via Singapore Airlines. If Singapore Airlines wants to continue its bet on Air India, it should do so on its own two feet, and not on Temasek's,” he said on a social media post.

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Kenneth Tiong Boon Kiat said he has filed a question for oral answer on September 8 sitting of the parliament, marking the Minister for Transport to discuss the matter.

Air India’s request could be one of the company’s largest publicly reported requests for shareholder funding. This comes as the airline undergoes a multi-billion-dollar revamp, including the refurbishment of its existing fleet.The carrier ⁠and its budget unit Air India Express posted combined losses of $2.33 billion in the fiscal year ended ​March, more than double the prior year's losses.

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Discussions are ongoing and no decision has ​been taken on the request, stated a Reuters report citing sources. Air India has undergone a challenging year, including the deadly crash that led to the death of 260 people, the Pakistan airspace ban, and the disruption to international networks due to the US-Iran war.