Temasek’s Endorsement and Investment Context Temasek, the sovereign wealth fund that holds a majority stake in Singapore Airlines (SIA), has reaffirmed its support for SIA’s $1.5 bn investment in Air India. The move comes as Air India, which is now 25.1 % owned by SIA and 74.9 % by Tata Sons, continues its costly transformation into a profitable carrier. Temasek’s statement highlighted that India, the world’s third‑largest air‑transport market, offers a strategic hub for SIA’s long‑term growth.
In the same week, Singapore’s Member of Parliament Kenneth Tiong Boon Kiat questioned whether SIA should use Temasek’s funds to prop up Air India, noting that the airline has requested an additional ₹14,000 cr. Despite the criticism, SIA’s board has said it will weigh Air India’s capital requests against other group needs.
Financial Impact and Future Outlook SIA’s FY25‑26 net profit slipped 57% to SGD 1.184 bn (≈₹8,900 cr) after the one‑off accounting gain from the Vistara merger was not repeated and after absorbing Air India’s losses of more than SGD 3.56 bn (≈₹26,700 cr). The loss stems largely from airspace curbs and other headwinds that hit the Indian carrier’s revenue.
Air India’s planned capital raise of $1.5 bn (₹14,000 cr) is aimed at funding fleet renewal, system upgrades and supply‑chain repairs that are expected to take five to ten years, as outlined by Tata Sons Chairman N. Chandrasekaran. Meanwhile, SIA will assess the request in light of its own capital requirements and regulatory obligations under the Civil Aviation Authority of Singapore Act.
With Temasek’s backing, SIA remains optimistic that the long‑term benefits of a second hub in India will outweigh the short‑term financial hit. Investors will watch how the partnership navigates the complex, multi‑year transformation of Air India and whether the airline can turn its current losses into sustainable growth.