Reuters is reporting that Singapore Airlines will seek greater financial control over Air India, in exchange for continuing its investment in the airline. Singapore Airlines currently has held a 25.1% stake in Air India since November 2024. The Indian domestic carrier has posted persistent losses in recent years and recently requested $1.5 billion in fresh equity.
What does Singapore Airlines Want?
Singapore Airlines has been one of Air India’s leading investors over the past two years.
The lack of return on these investments has, however, reportedly considered the flag carrier’s leadership to reconsider the two airlines’ relationship.
State investor Temasek Holdings, which owns 56% of Singapore Airlines, has also stated that it does not intend to invest directly in Air India.
Singapore Airlines itself is reportedly happy to continue its current investment programme, however, providing it is granted greater board voting power.
Under Indian law, a 25.1% stake enables Singapore Airlines to block certain special resolutions made by Air India’s board, such as potential mergers, but gives the investor limited control over the day to day running of the airline.
How Did They Reach this Point?
Singapore Airlines first formally expressed interest in taking partial control of an Indian domestic airline in 1995.
These efforts were blocked, however, by a law passed in 1997 which banned foreign airlines from buying shares in Indian domestic airlines.
This law was altered in September 2012, allowing foreign airlines to purchase up to 49% of an Indian competitor.
Singapore Airlines purchased a 49% stake in the Vistara airline in September 2013, with the holding company Tata Sons owning the other 51%.
Vistara merged with Air India, which was owned entirely by Tata Sons at the time, in November 2024. Tata Sons took a majority stake in the merged airline, with Singapore Airlines continuing to provide funding, in exchange for a 25.1% stake.
Singapore Airlines reaffirmed its cooperation framework with Air India in January, with CEO Goh Choon Phong stating in May that he had no intention of ending the funding arrangement.
“We have never had any illusion that it is an easy path.” Goh said. “Way back when we started the joint venture with our partner Tata Sons to set up Vistara, we knew at that point in time that it is a long game”.
This was in spite of Air India’s recent financial difficulties.
Air India’s Finances
Air India reportedly made a loss of roughly $2.33 billion between April 2025 and March 2026.
In August, India’s flag carrier requested $1.5 billion of investment in order to offset the loss, while admitting that full financial recovery could take as long as a decade.
Speaking in July, Tata Sons’ Chairman Natarajan Chandrasekaran cited high fuel costs, particularly during the U.S.-Iran conflict, as a key reason behind Air India’s lack of profitability.
He also acknowledged that the flight AI171 crash, which caused the deaths of 241 people in June 2025, had damaged fliers’ confidence in the airline.
Singapore Airlines responded to this statement by saying that Air India were making “tangible progress”, and reiterating the potential for growth in India’s domestic market.
Have you ever flown with Air India? Do you think it can become profitable? Let us know in the comments.
