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

According to Business Recorder, Kenneth Tiong, an opposition Workers' Party lawmaker in Singapore, has urged that state investor Temasek's money stay out of any Air India rescue. The call followed a Reuters report that the Indian carrier asked owners Tata Sons and Singapore Airlines for about $1.5 billion. Tiong argued that since Singapore Airlines owns 25% of Air India and Temasek owns most of Singapore Airlines, the request is more than a private matter.

In a social media post on Wednesday, he said he would not back any future drawdown of Temasek's money to support Air India via Singapore Airlines. He added that whichever party pays, the move would materially affect Temasek. Tiong has also lodged a question for oral reply in parliament on September 8, asking the transport minister whether Singapore Airlines has measured losses and carrying values at its foreign associates against its capacity for essential transport services.

Singapore Airlines said its board would weigh any request for more capital carefully, considering its other capital needs and Air India's business plans. Its 25.1% stake has dragged on earnings as losses at the Indian carrier grew, and N. Chandrasekaran, chairman of Tata Sons, has said the turnaround could need as long as a decade. For the year to March, Air India together with Air India Express recorded losses totalling $2.33 billion, over twice the prior year's level.