Singapore Airlines in Singapore says investments in India are funded internally
In Singapore, Singapore Airlines said that its investments in India were financed and will continue to be financed from internal resources. As Channel NewsAsia reports, such investments must receive board approval and comply with the company’s capital allocation framework.
The statement was released after a question from Singapore Member of Parliament Kenneth Tiong about whether the losses of Singapore Airlines’ foreign partners had been assessed in view of the carrier’s ability to provide essential transport services.
Stake in Air India
Singapore Airlines established Vistara with Tata Sons in 2013. After Vistara merged with Air India in November 2024, Singapore Airlines owns a 25.1% stake in the enlarged Air India Group.
As of June 30, Singapore Airlines had S$10.48 billion in cash reserves. Of this amount, S$9.10 billion consisted of cash and bank balances, while S$1.38 billion was in fixed deposits. The group’s current debt obligations due within 12 months amounted to less than S$3 billion.
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The company also has S$3.24 billion in committed credit facilities that remain undrawn. Possible additional capital requests will be assessed with regard to Air India’s strategy, Singapore Airlines’ operating cash flow, and its financing needs for new aircraft and products.
Carrier transformation
Singapore Airlines called Air India’s transformation a complex multi-year programme which, in the company’s assessment, will not be linear. The challenges cited included the prolonged closure of Pakistani airspace to Indian carriers, the Air India plane crash in which 260 people died, the weakening of the rupee against the US dollar, supply chain disruptions, the loss of a key market due to the conflict in the Middle East, and high fuel prices.
At the same time, Singapore Airlines reported improvements in Air India’s passenger service and operational performance. According to the company, the index measuring customers’ willingness to recommend the brand rose by more than 70 points since November 2022. In May, Air India received a four-star rating from Skytrax, while Air India Express received four-star low-cost carrier certification.
Singapore Transport Minister Jeffrey Siow told parliament that the investment in Air India does not affect Singapore Airlines’ ability to serve the country’s residents. According to him, losses or other factors have not limited the company’s resources for fleet maintenance or the operation of its route network in Singapore.
