Temasek, Singapore’s state investor, has backed Singapore Airlines in its investment in Air India, amid increasing scrutiny of the loss-making Indian carrier. Air India, partly owned by Singapore Airlines (25.1% stake) and Tata Sons, is seeking about US$1.5 billion in equity to support its operations.
Critics, including Singapore opposition lawmaker Kenneth Tiong, have voiced concerns about using Temasek’s funds for Air India’s financial struggles. A commentary in Singapore’s Business Times also questioned the benefits of Singapore Airlines’ stake in Air India, suggesting that a realistic exit from the investment is not feasible, with Tata being the only potential buyer.
In response, Juliet Teo from Temasek emphasized the long-term strategic prospects of the airline’s investment in Air India, acknowledging the complexity of transforming the airline and external factors influencing its performance.
