Temasek backs SIA's Air India bet

Temasek, the majority owner of Singapore Airlines (SIA), backed its investment in Air India on Saturday, according to The Express Tribune. Scrutiny of the stake in the loss-making Indian carrier is growing. Air India has sought about $1.5 billion in fresh equity from Tata Sons and Singapore Airlines, a request first reported by Reuters.

Kenneth Tiong, a Workers' Party lawmaker, wants Temasek's funds kept away from Air India, saying the matter is not solely for private shareholders. Singapore's Business Times commentary argued SIA could hardly exit its 25.1% stake, with Tata the only realistic buyer, and questioned what the holding brings apart from a board position and sharing in losses. Tiong has also tabled a parliamentary question for September 8 on whether SIA's foreign associate losses have been weighed against its essential transport duties.

Juliet Teo of Temasek wrote to the Business Times that the group takes a long-term view of SIA's decision and supports it. She said the revamp, begun after Tata took control in 2022, faces multi-year challenges shaped by airspace disruptions, geopolitical events and fuel volatility. Air India has also faced a Pakistani airspace ban on Indian airlines, disruption from the US-Israeli war with Iran, and a crash that killed 260 people last year. Over the year to March, the carrier and its budget subsidiary together lost $2.33 billion, which weighed on SIA's profits.