Singapore Airlines (SIA), which holds a 25.1% stake in Air India, has expressed willingness to consider additional capital infusion into the Indian carrier, which is currently facing mounting losses, according to livemint.com. This marks SIA's first public indication of potential fresh funding support for Air India, part of the Tata Group, as of July 20.
The Singapore-based airline stated that its board will carefully evaluate any requests for further investment from Air India. Despite the financial challenges faced by the Indian airline, SIA reaffirmed its long-term commitment to maintaining its quarter stake in Air India. Investor groups, including the Singapore Investors Association (SIAS), have questioned the rationale behind SIA's investment given Air India's ongoing losses, as reported by Bloomberg.
The move to consider additional funding comes amid Air India's efforts to stabilize and grow in a competitive aviation market. SIA's stake and potential capital support could influence Air India's strategic plans and operational turnaround. This development follows a trend of strategic partnerships and investments in the Indian aviation sector, where foreign investors play a significant role in the growth of domestic carriers.
Air India is currently under the ownership of the Tata Group, which has been working to improve the airline's financial health. The next key milestone will be any formal capital request from Air India to Singapore Airlines, which the SIA board has committed to reviewing carefully, according to livemint.com.