Singapore Airlines to retain final say on AI funds

Singapore Airlines' board has pledged to maintain control over any further investment in loss-making Air India, according to chairman Peter Seah's statements at the company's recent annual general meeting. The board maintains that Air India remains a long-term investment with significant potential due to India's growing middle income population, as disclosed in the minutes of the July AGM.

Seah highlighted that it is uncommon for a foreign airline (SIA) to be granted a stake in a domestic market (India). The board's commitment to Air India is unwavering, and they will continue to assess the investment based on evolving circumstances. The disclosure has sparked debate in Singapore, with growing concern about the impact of Air India's losses on SIA's capacity to provide essential transport services.

Air India is requesting approximately $1.5 billion in additional equity from Tata Sons and Singapore Airlines. SIA CEO Goh Choon Phong remains confident in Air India's growth prospects, emphasizing the need for time and effort to realize that potential. However, he urged shareholders to support Air India as SIA's new Indian growth engine, noting that the company cannot disclose specific investment amounts or tolerance limits at this juncture, as any decision would require a sound business case and align with SIA's financial capabilities.