Singapore Airlines may seek greater say before backing fresh Air India funding, sources say

Singapore Airlines may require stronger governance measures before contributing more funds to Air India, according to sources. The airline could seek greater voting power on the board and expect Air India to cut its losses, sources disclosed. Singapore Airlines' majority shareholder, Temasek, would not directly invest or interfere in Air India decisions.

Discussions emerged after Air India requested up to US$1.5 billion in new equity. Tata Sons, Air India's majority owner, approved a US$1.1 billion injection, reflecting its stake, while Singapore Airlines holds the remaining 25.1 percent. Singapore Airlines emphasized its board would scrutinize any additional capital request, considering the Indian carrier's business strategy, cash flow, and other capital needs.

The push for stricter conditions arises as Singapore Airlines faces scrutiny over further investment in Air India, which incurred a US$2.33 billion loss last year, impacting Singapore Airlines' profits. Following the request, an opposition lawmaker in Singapore urged Temasek to refrain from funding Air India. Singapore Airlines clarified that its investments in India would continue through internal resources, boasting S$10.48 billion in cash reserves and S$3.24 billion in unused credit lines as of June.