Singapore Airlines sees loss-making partner Air India on road to recovery
New Delhi, July 22
Singapore Airlines has said it is seeing "tangible progress" in Air India's transformation and the Indian carrier continues to be a key part of its long-term multi-hub strategy despite the challenges that the Tata Group airline was facing.
The airline made the remarks while responding to shareholder and investor queries ahead of its annual general meeting (AGM) scheduled for July 24.
Responding to the query, SIA said it had undertaken a formal impairment assessment after identifying indicators that warranted a review but concluded that no write-down in Air India was necessary.
According to a filing with the Singapore Exchange, SIA reaffirmed that its 25.1 per cent stake in Air India remains a key part of its long-term multi-hub strategy, citing India's strong aviation growth potential. As reported by The Straits Times, the airline also addressed questions on Air India's future funding, geopolitical risks, digital services and customer experience.
SIA acknowledged that Air India continues to deal with several well-publicised challenges, including the depreciation of the Indian rupee, supply chain disruptions, closure of Pakistan's airspace and the June 2025 plane crash that claimed 260 lives.
Despite these hurdles, the Singapore carrier said Air India has made measurable progress across key areas, including customer experience, fleet and network expansion, operational performance, and improvements to its ground and in-flight services.
SIA said its board would carefully evaluate any future request for additional capital from Air India after considering the group's own capital requirements and Air India's business strategy.
The airline, however, declined to comment on reports that Air India had sought a $1.1 billion capital infusion in October 2025.
SIA said, "In line with its accounting policy, the Group assesses its investment in Air India at each reporting date for any indicators of impairment, and performs a formal impairment test whenever there is objective evidence that the value of its investment in Air India may be impacted," the airline said.
Singapore Airlines further stated that its Chief Executive Officer serves as a non-executive and non-independent director on Air India's board, allowing the airline to provide strategic guidance and industry expertise.
— IANS
Reader Comments
As a frequent flyer on AI, I can see the improvements—cleaner cabins, better food, more legroom. But the $1.1 billion capital request? That's a lot of money. Let's hope the Tatas don't over-leverage. The airline has potential, but it's not out of the woods yet.
Impressed that SIA is standing by Air India despite the challenges. The India-Singapore route is critical for business travel, and Air India's network expansion is a smart move. But geopolitical risks like Pakistan's airspace closure are real—hope they have a backup plan.
The mention of the June 2025 crash is sobering. Safety must be the top priority—no shortcuts. I'm glad SIA is taking a strategic view rather than panicking. India's aviation market is too big to ignore, and Air India is the flag carrier. Let's be patient.
"Tangible progress" is corporate speak for "we're not writing off our investment yet." 😅 But seriously, Air India's transformation under Tata has been impressive. The merger with Vistara was messy, but the product is now much better. Keep going!
I'm cautiously optimistic. The rupee depreciation hurts everyone, but Air India's debt load is still huge. SIA's CEO on the board is good for strategic guidance, but they need to sort out punctuality. Every time I fly AI, there's a 30-minute delay. That needs to change.
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