Transport Minister and SIA Defend Air India Investment Amid Parliamentary Scrutiny

Transport Minister Jeffrey Siow told parliament on September 8 that Singapore Airlines' (SIA) investment in Air India does not affect the carrier's ability to serve Singaporeans. The statement follows questions from Workers' Party MP Kenneth Tiong regarding whether losses from foreign associates could materially impede SIA's capacity to provide essential transport services under the Civil Aviation Authority of Singapore Act. Mr. Siow stated that SIA is nowhere close to a scenario where resources for fleet maintenance or network operations are constrained; he noted that Air India's losses do not automatically become SIA's liabilities. SIA holds a 25.1 per cent stake in the Air India Group following the merger of Vistara into Air India in November 2024. This investment has faced scrutiny after reports indicated Air India is seeking US$1.5 billion in additional support from owners Tata Sons and SIA, following a record annual loss. SIA responded by stating that its investments in India have been and will remain funded through internal resources. A spokesperson highlighted that the group possesses S$10.48 billion in cash reserves as of June 30 and has access to S$3.24 billion in undrawn credit lines. While SIA reported record revenues of S$20.5 billion for the 2026 financial year, it posted a net loss of S$76 million for the first quarter of FY2027. MP Kenneth Tiong questioned the timeline for a turnaround, noting that Air India's losses doubled last year. In response to the parliamentary exchange, Mr. Siow criticized Mr. Tiong's public rhetoric on Facebook as drawing tenuous linkages and using emotive terms. Meanwhile, Senior Minister K Shanmugam noted on September 5 that police are investigating racist and xenophobic online comments related to the investment. SIA described the transformation of Air India as a complex, multi year programme that is not expected to be linear, citing challenges such as fuel prices, supply chain disruptions, and the depreciation of the rupee.