Singapore International Airlines (SIA) said that it will carefully consider any requests for additional capital from Air India while taking into consideration the Group’s other capital requirements and Air India’s business strategy. SIA, which holds 25.1% stake in Air India, describes its investment in the loss-making airline as a cornerstone of its multi-hub strategy. Tata Sons owns the remaining 74.9% stake in Air India currently.
“The SIA Group’s capital allocation follows a disciplined evaluation process that considers its operating cash flow, investment requirements in new aircraft and products, as well as multi-hub investments such as Air India, to support sustainable long-term growth and returns. The Board will carefully consider any requests for additional capital from Air India, taking into consideration the Group’s other capital requirements and Air India’s business strategy,” said SIA while responding to questions from the Securities Investors Association (Singapore) (SIAS) ahead of its annual general meeting.
The response by SIA comes amid mounting losses at Air India and its effort to raise more capital from existing stakeholders to fund its aggressive growth plans. SIA’s annual financial statement showed that Air India's losses stood at about $2.8 billion in FY26, its biggest annual loss since the airline was taken over by the Tata Group in 2022.
SIA’s share of Air India’s losses reached S$945.2 million (or $732 million) in FY26. The carrying value of its Air India investment fell to S$1.13 billion ($880 million) from S$2.02 billion ($1.56 billion) a year earlier.
“SIA’s 25.1% stake in the enlarged Air India Group is a pillar of the Group’s multi-hub strategy. This recognises India’s growth and aviation market potential, and builds on SIA’s direct participation in India that began more than a decade ago through Vistara, its joint venture with Tata Sons, prior to Vistara’s merger with Air India in November 2024,” said SIA.
It added that Air India investment provides direct access to India’s domestic market and international flows via Indian hubs, complementing the Singapore hub and supporting growth opportunities that cannot be fully realised through a single-hub model. It added that Air India continues to face well-publicised challenges, including high fuel prices, the depreciation of the Indian rupee against the US dollar, supply chain disruptions, the continued Pakistan airspace closures for Indian carriers, and the AI171 accident.
Meanwhile, Air India Group expects to receive 50-60 new aircraft over the next 18 months, with its transformation programme remaining on track despite facing multiple industry-wide challenges, said chief commercial officer Nipun Aggarwal. He added that the airline has gained significant experience over the past few years while navigating a complex transformation.