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Opposition Singapore MP Kenneth Tiong has expressed opposition to the use of state investor Temasek's funds to support Air India, following the Indian carrier's plea for US$1.5 billion. Tiong, representing the Workers' Party, argued that the request was not solely a matter for private shareholders, as Singapore Airlines, which owns about 25% of Air India and Temasek in turn owns most of Singapore Airlines, is involved.

He stated that if Singapore Airlines wished to continue its investment in Air India, it should do so independently and not rely on Temasek's funds. The Singapore Ministry of Transport, Temasek, Air India, Tata Sons, and Tiong did not respond to requests for comment. Singapore Airlines' board would evaluate any capital requests from Air India, considering the group's other capital needs and the airline's business strategy.

Tiong also submitted a parliamentary oral question on September 8, inquiring whether the transport minister had assessed losses from and the carrying amount of Singapore Airlines' foreign associates against its capacity to provide essential transport services. This scrutiny of Air India's funding request highlights the commercial nature of the decision, as the airline's 25.1% stake in Air India has negatively impacted Singapore Airlines' earnings during Tata Sons' decade-long turnaround plan.

Air India and its budget subsidiary Air India Express reported a combined loss of US$2.33 billion for the year ending March, double the previous year. The Indian carrier is anticipated to continue needing capital injections in the future, according to a source familiar with the matter. This is not the first time Singapore's flag carrier has been questioned about funding for Air India.

The Securities Investors Association (Singapore) previously asked the Singapore Airlines board about setting capital allocation limits for Air India and the circumstances under which additional capital would be approved. Singapore Airlines did not provide a limit, stating that its board would carefully consider any requests, taking into account its other capital requirements and the airline's business strategy.

Air India has faced challenges including Pakistan's airspace ban on Indian carriers, disruptions to its international network due to the US-Israeli war with Iran, and the aftermath of a crash last year that claimed 260 lives.