Singapore Airlines (SIA) has said any future capital infusion into Air India will be evaluated on a case-by-case basis, even as it reaffirmed its long-term commitment to supporting the Tata Group-owned airline's transformation as a key pillar of its multi-hub growth strategy.
Responding to questions from the Securities Investors Association (Singapore) (SIAS) ahead of its annual general meeting, SIA said its board has not set any predetermined investment limits for Air India. "The board will carefully consider any requests for additional capital from Air India, taking into consideration the Group's other capital requirements and Air India's business strategy," the airline said.
The carrier added that its capital allocation framework follows a disciplined evaluation process that considers operating cash flows, investment requirements for aircraft and products, as well as strategic investments such as Air India.
The responses come amid investor interest in the scale of Singapore Airlines' commitment to Air India, which continues to execute a multi-year transformation programme involving fleet renewal, network expansion, product upgrades and operational improvements.
Asked how its investment in Air India differs from those in airlines such as Air New Zealand, Virgin Atlantic and Virgin Australia, SIA said every investment is assessed independently based on long-term growth potential, strategic alignment, operating environment and risk profile.
The airline described its 25.1 percent stake in the enlarged Air India Group as a cornerstone of its multi-hub strategy, giving it direct access to India's rapidly expanding domestic market and international passenger flows through Indian hubs.
The investment builds on more than a decade of partnership with the Tata Group through Vistara before its merger with Air India in November 2024, it said.
Air India's financial performance has continued to weigh on Singapore Airlines' earnings even as the Tata Group-owned carrier presses ahead with its transformation programme.
For FY26, Air India reported a net loss of Rs 26,400 crore, reflecting continued investments in fleet modernisation, product upgrades, network expansion and integration costs following the Vistara merger.
As a result, Singapore Airlines recognised a share of loss of S$330 million (around Rs 2,180 crore), compared with a share of profit of S$48 million from Vistara in the previous year.
"The Air India investment provides direct access to India's domestic market and international flows via Indian hubs, complementing the Singapore hub and supporting growth opportunities that cannot be fully realised through a single-hub model," SIA said, adding it is the only non-Indian airline group with a direct equity stake in India's aviation market.
The airline did acknowledge that Air India continues to face significant headwinds, including elevated fuel prices, a depreciating rupee, supply-chain disruptions, the continued closure of Pakistan's airspace and the impact of the AI-171 accident.
Despite the challenges, SIA said Air India has made tangible progress in several areas , including customer experience, fleet and network expansion, onboard and ground services, and operational performance.
As a significant minority shareholder, Singapore Airlines said it remains committed to supporting Air India's turnaround alongside Tata Sons. It said SIA Chief Executive Officer Goh Choon Phong serves as a Non-Executive and Non-Independent Director on Air India's board, allowing both shareholders to provide strategic guidance to the airline's management.