Singapore opposition lawmaker opposes use of Temasek funds to shore up Air India

Singapore opposition lawmaker Kenneth Tiong has expressed opposition to the use of Temasek's funds to support Air India. This comes after Reuters reported that the Indian carrier had approached owners Tata Sons and Singapore Airlines, of which Temasek is the majority shareholder, for approximately $1.5 billion. Tiong, a member of parliament for the opposition Workers' Party, stated that the request was not solely a matter for private shareholders since Singapore Airlines, which owns around 25% of Air India, is also a Temasek investment.

He emphasized that if Singapore Airlines wishes to continue its investment in Air India, it should do so independently without relying on Temasek's funds. Tiong highlighted that whichever shareholder provides the capital will have a significant impact on Temasek's financial standing. Neither Air India nor its parent companies responded to inquiries about the matter.

While a Singapore Airlines spokesperson mentioned that the company's board would carefully evaluate any additional capital requests from Air India, considering other capital needs and the airline's business strategy, Tiong also filed a parliamentary question on September 8 to inquire whether losses of Singapore Airlines' foreign associates have been evaluated against its ability to provide essential transport services.

This political scrutiny stems from Air India's ongoing financial struggles, with the airline and its budget subsidiary Air India Express posting combined losses of $2.33 billion in the year to March, more than doubling the previous year. Air India's losses are expected to persist, requiring further capital injections in the coming years.

The airline has faced challenges including a ban on Indian carriers in Pakistan, disruptions from the U.S.-Israeli war with Iran, and the aftermath of a fatal crash that claimed 260 lives.