Air India investment does not impede SIA’s operational capabilities: Jeffrey Siow
The onus is on SIA’s management to decide whether an investment would make commercial sense.
Singapore Airlines (SIA) recently invested 25.1% in India's Air India, but Transport Minister Jeffrey Siow stated that this stake does not negatively affect SIA's ability to provide essential transport services to Singaporeans. Air India, the second-largest airline in India, is seeking US$1.5 billion (S$1.9 billion) in fresh equity, which would otherwise not become SIA's liability.
The onus lies on SIA's board and management to decide whether investment in Air India would be commercially viable for the company and its shareholders, according to Siow. SIA's recent financial results have been strong, with record revenues of US$20.5 billion and a 39% increase in operating profit for the fiscal year ending March 31, 2026.
However, losses from the Air India investment have been significant, with SIA posting a net loss of US$76 million in the first quarter of 2027. Siow emphasized that SIA's ability to make decisions, even in challenging markets, is crucial for the company's global competitiveness.
Written by urgent.news from Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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