‘Will carefully consider any request from AI for additional capital: SIA after opposition MP opposes using Temasek funds

NEW DELHI: Singapore Airlines, which holds 25.1 percent stake in Air India, Thursday said it will “carefully consider any requests for additional capital from AI, taking into consideration the group’s other capital requirements and AI’s business strategy.” The trusted aviation partner of Tatas, which holds the remaining 74.9 percent stake in AI, a SIA spokesperson said the airline will “works with Tata Sons to support AI’s transformation programme as a significant minority shareholder.”SIA made its stand clear after a Singapore opposition MP Kenneth Tiong opposed using state investor Temasek’s funds to meet AI request for more fund infusion from its twin promoters. Since Temasek owns most of SIA, the opposition Workers' Party legislator had said in a social media post Wednesday AI’s request was “not only a question for private shareholders.”“AI has asked its owners for another $1.5 billion…. No one, least of all Singaporeans, owes Air India a living. I will not support, nor expect, any future use of Temasek's funds to prop up AI via SIA. If SIA wants to continue its bet on AI, it should do so on its own two feet, and not on Temasek's,” Tiong said on his social media post.“Tata Sons' chairman has said the turnaround could take up to a decade… That same chairman steps down in Feb… SIA went into the red last quarter despite record revenue,” the post says, adding Tiong has asked Singapore govt “whether these losses have been assessed against SIA's capacity to provide essential transport services.”The SIA spokesperson said: “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.”AI has returned to its shareholders for $1.5 billion, more than a year after Tata Sons halted fresh equity injections into the airline, as its turnaround proves costlier and slower than initially envisaged. The amount would rank among the largest shareholder funding exercises since Tata Group regained control of the former state carrier in 2021.Tata Sons had paused additional equity support in the year to March 2026. Its investment in AI stood unchanged at Rs 22,618 crore in the FY2026 report, the same level as a year earlier — indicating no fresh equity was infused during the year.Air India’s funding requirements were discussed at Tata Sons board meeting in June, chaired by N Chandrasekaran, the people said. The talks came against a backdrop of mounting losses and rising capital needs as the airline executes a multi-year transformation programme.Air India reported a loss of Rs 22,238 crore in FY2026, more than double the previous year’s deficit and the largest among Tata Group companies. Air India has been the worst-hit Indian carrier from the closure of Pakistani airspace since last April, given the volume of flights it runs west from its Delhi hub — from the UAE to North America. The next blow came when its London-bound Dreamliner crashed in Ahmedabad last June, killing 260 people, forcing further flight cuts. The February 28 US-Iran war then sent oil prices higher and the rupee lower, lengthening Delhi’s already longer western routes and driving up operating costs — while Air India competed against western carriers overflying Pakistan on far shorter paths.Get the latest Business News and Live updates. Download the TOI app.