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Singapore Airlines is expected to seek greater influence over management and stronger governance rights before approving any capital injection into Air India, two people familiar with the matter told Reuters on September 9, 2026. The proposed conditions, which would be negotiated with Air India’s majority owner Tata Sons, could include greater board voting power and requirements for the Indian carrier to narrow its losses, the sources said. Singapore Airlines, which holds a 25.1 percent stake in Air India, faces mounting pressure to justify further investment in the carrier that has weighed on its own financial results.
Reuters reported last month that Air India was seeking about $1.5 billion in fresh equity from its owners. Two other people familiar with the discussions said Tata had approved a $1.1 billion infusion representing its pro-rata share, according to the news agency. All four people declined to be identified because the information is not yet public, Reuters noted in its exclusive dispatch.
The push for tougher terms comes as Air India posted a $2.33 billion loss in the financial year ended March, a figure that has directly impacted Singapore Airlines’ profits, Reuters data shows. Singapore Airlines had $8.3 billion in cash reserves at the end of June, according to the carrier’s financial disclosures. In a statement, Singapore Airlines said its board would carefully evaluate any request for additional capital, taking into account Air India’s business strategy, the group’s operating cash flow and its other capital requirements.
Under a 2022 merger agreement, Singapore Airlines folded its 49 percent-owned Vistara into Air India, securing the 25.1 percent stake and a single board seat, Reuters reported. The Singapore carrier has provided aviation expertise to support Air India’s transformation programme and placed executives in operational roles at the Indian airline. Temasek, Singapore Airlines’ majority shareholder, would neither provide the capital itself nor intervene in decisions concerning Air India, people familiar with the situation told Reuters.
Air India on Tuesday appointed former Ethiopian Airlines chief Tewolde Gebremariam as its new CEO, replacing Campbell Wilson, multiple reports confirmed. The leadership change occurs as the carrier works to improve both financial and operational performance in a competitive Indian aviation market. Singapore Airlines has reaffirmed its long-term commitment to the Indian market through its investment, according to statements from the carrier.
The development has sparked debate in Singapore’s parliament, where lawmakers have questioned the rationale for continued support amid Air India’s losses, Reuters coverage indicated. Senior Minister K Shanmugam stated that investment decisions rest solely with Singapore Airlines, with Temasek having publicly backed the carrier’s long-term strategy in India. Singapore Airlines has emphasised that its investments in India have been and will continue to be funded through internal resources subject to board approval.
Industry analysts have noted that Air India’s turnaround could take up to a decade as it addresses legacy issues from its time as a state-owned enterprise, according to assessments referenced in Reuters reporting. The Indian carrier commands a significant share of the domestic market, which has seen rapid growth in passenger traffic over recent years. Singapore Airlines continues to view the partnership as a pillar of its multi-hub strategy providing access to India’s domestic and international traffic flows.
