Singapore minister defends Singapore Airlines' investment in Air India

Singapore's Transport Minister Jeffrey Siow defended the city-state's flag carrier, Singapore Airlines, investment in struggling Air India on Tuesday. Speaking in parliament, Siow stated that the airline must expand internationally due to a cap on the number of passengers flying in and out of Singapore. He emphasized that Singapore Airlines, a listed company, funds investments solely from its balance sheet and has not sought additional capital from shareholders.

As the majority owner of a 25.1% stake in Air India, Singapore Airlines' investment has drawn political scrutiny due to the Indian carrier's mounting losses amid its multibillion-dollar turnaround plan, which could span up to a decade.

Siow also acknowledged that investments in Air India may not yield immediate returns, but the long-term impact on Singapore Airlines' ability to serve its domestic market is not compromised. He clarified that the current evaluation is that Singapore Airlines' capacity to serve Singaporeans is unaffected by its stake in Air India.

Responding to a lawmaker from the opposition Workers' Party, Siow emphasized that Singapore Airlines has not requested further funding from its shareholders. If such a move were necessary, it would be a commercial decision between the company and its shareholders, according to Siow.

The revelation of Air India's funding request of around US$1.5 billion from its owners, Tata Sons and Singapore Airlines, prompted the lawmaker to urge against utilizing Temasek's funds for the Indian carrier. Singapore's Senior Minister K Shanmugam, on Saturday, stated that Temasek, as a shareholder of Singapore Airlines, expects the company to make responsible investment decisions, which are best determined by the company itself.

Shanmugam also requested the police to investigate racist remarks made online during the debate about the Air India investment.