SIA to Thoroughly Evaluate AI’s Capital Request
Singapore Airlines (SIA), which owns a 25.1% stake in Air India (AI), announced on Thursday that it will evaluate any requests for additional capital from AI while considering the group’s overall capital needs and AI’s business strategy. A spokesperson for SIA stated that the airline intends to collaborate with Tata Sons to support AI’s transformation as a significant minority shareholder. Tata Sons holds the remaining 74.9% stake in AI.
SIA’s position comes in response to concerns raised by Singapore opposition MP Kenneth Tiong, who criticized the potential use of state investor Temasek’s funds to fulfill AI’s request for further financial support. Tiong expressed on social media that AI’s request for $1.5 billion should not involve public funds, emphasizing that SIA should independently manage its investment in AI without relying on Temasek.
Tiong also highlighted that Tata Sons’ chairman indicated the turnaround for AI could take up to a decade, coinciding with his impending resignation in February. He pointed out that SIA reported a loss last quarter despite achieving record revenue, questioning whether these losses have been evaluated against SIA’s capacity to provide essential transport services. In response, SIA reiterated that its capital allocation process is disciplined, factoring in operating cash flow, investment needs for new aircraft, and multi-hub investments like Air India.
AI’s request for $1.5 billion comes after Tata Sons paused fresh equity injections into the airline over a year ago, as the turnaround has proven more costly and slower than anticipated. This funding request ranks among the largest shareholder funding exercises since Tata Group regained control of the airline in 2021. Tata Sons’ investment in AI remained unchanged at Rs 22,618 crore in the FY2026 report, indicating no new equity was infused during the year. Air India reported a loss of Rs 22,238 crore in FY2026, more than double the previous year’s deficit and the largest among Tata Group companies.
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