Former Temasek CEO Ho Ching has defended Singapore Airlines’ investment in Air India as scrutiny grows over the Indian carrier’s mounting losses and request for fresh funding.
In a Facebook post, Ho argued that Air India’s difficult history shows why rebuilding a major airline is a long-term challenge. She said running an airline is complicated because the industry is heavily regulated and influenced by factors beyond normal market forces.
The debate intensified after Air India reportedly sought about US$1.5 billion in fresh equity from its owners, Tata Sons and Singapore Airlines. SIA holds a 25.1% stake in the enlarged Air India Group, while Tata owns the remainder.
Air India and Air India Express recorded combined losses of about US$2.33 billion in the financial year ending March, adding pressure to the investment. SIA has said its board will carefully assess any request for additional capital.
Temasek, which is the majority shareholder of Singapore Airlines, has separately backed SIA’s investment strategy, describing the Air India transformation as a complex, multi-year process affected by geopolitical developments, airspace disruptions and fuel prices.
SIA says the investment gives it direct access to India’s fast-growing domestic aviation market and international traffic through Indian hubs, supporting a broader multi-hub growth strategy.
But the investment remains controversial in Singapore. Workers’ Party MP Kenneth Tiong has argued that Temasek funds should not be used to support Air India through SIA, raising questions about whether Singapore should bear additional financial exposure.
The bigger question now is whether Air India’s ambitious transformation can eventually deliver the growth that justified SIA’s investment — or whether more capital will be required before the turnaround begins to pay off.
WWC ONE MEDIA J.M.D
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