Temasek states its long-term support for SIA's Air India investment

Temasek, the majority shareholder of Singapore Airlines (SIA), has expressed its support for the airline's long-term strategy, particularly concerning its minority investment in Air India. The Singaporean investment company detailed its support in a statement to the Business Times, following Air India's reported loss of S$3.2 billion.

As a result of this loss, Air India Group is seeking nearly S$1.9 billion in fresh equity from SIA and Tata Sons, with SIA expected to contribute about half a billion dollars. Temasek praised SIA for demonstrating discipline and resilience during industry cycles and for consistently positioning itself for long-term growth, citing SIA's strong recovery post-COVID-19 pandemic.

The investment company also highlighted SIA's objective to invest in a second hub to secure long-term growth beyond Singapore, with India being a suitable choice as the world's third-largest air transport market. Temasek supports SIA's investment in Air India as it allows for deeper participation in India's aviation growth. The transformation of Air India, however, involves complex multi-year operational and integration challenges, which Temasek acknowledged as likely to be non-linear.

These challenges include industry developments such as aircraft innovation and fleet renewal cycles, as well as disruptions caused by geopolitical events and fuel price volatility. Reuters reported on some of these challenges, including Indian airlines being barred from Pakistani airspace due to ongoing tensions and airspace disruptions caused by the war in Iran.

Additionally, a fatal air crash in 2025 was cited. Reuters did not address whether Temasek would support any capital contribution from SIA to Air India, but SIA stated that its board would carefully consider any such request.