Singapore govt to not interfere in SIA’s Air India investment

Dhaka: Singapore’s government will not intervene in Singapore Airlines’ investment decisions concerning Air India, Senior Minister Shanmugam said, as the Indian carrier weighs additional financial support from its shareholders.

Shanmugam said Singapore Airlines should independently determine whether further investment in Air India fits its long-term financial and growth objectives. He stressed that the government’s policy is to avoid political influence over individual commercial investment decisions.

“Commercial discipline” could be undermined if governments directed companies on where to invest, he said, adding that Singapore Airlines’ shareholders and the wider public could reasonably expect transparency and careful evaluation before additional funds are committed.

Air India is reportedly close to securing around INR 100 billion (USD 1.1 billion) from its owners, Tata Sons and Singapore Airlines. The proposed funding could be released in stages and tied to the airline meeting specific performance targets.

Tata Sons holds a 74.9 percent stake in Air India, while Singapore Airlines owns the remaining share.

The carrier has faced several challenges, including the fatal crash of a Boeing 787 Dreamliner, restrictions on Indian airlines using Pakistani airspace and disruptions from the Middle East conflict, which have affected operations and fuel costs.

Shanmugam also said Temasek Holdings, Singapore Airlines’ majority shareholder, makes individual investment decisions independently, while remaining accountable to the Singapore government for the overall performance of its portfolio.