Singapore Airlines Steps Up Role at Air India Amid Losses

Singapore Airlines is deepening its operational involvement in Air India as the airline faces mounting financial losses and increasing scrutiny over safety and regulatory compliance.

According to sources familiar with the situation, Singapore Airlines has begun placing its executives in key operational roles within Air India, including flight operations, engineering, and maintenance, areas where the Singaporean carrier is widely regarded as an industry benchmark. This marks a significant shift from its earlier role as a strategic partner to a more hands-on operational presence.

Air India is majority-owned by Tata Group, which holds a 74.9% stake and continues to focus on core corporate functions such as commercial strategy, human resources, finance, and information technology. Singapore Airlines, which owns a 25.1% stake, is increasingly stepping in to support operational transformation efforts.

The expanded involvement follows a series of challenges for Air India, including a fatal Boeing 787 Dreamliner incident, regulatory compliance issues flagged by European authorities, and reports of aircraft operating without proper airworthiness certification. These setbacks have intensified scrutiny of the airline’s engineering and safety standards.

Financial pressures are also mounting. Air India reported losses of approximately $2.4 billion last year, underscoring the scale of the turnaround challenge. The airline’s performance has begun to weigh on Singapore Airlines’ earnings, with the latter reporting S$178 million ($139 million) in losses from associated companies, primarily linked to Air India, in the December quarter.

Geopolitical factors have further complicated the recovery. Airspace restrictions, including the closure of Pakistani airspace, along with ongoing tensions in the Middle East, have forced airlines to operate longer and more expensive routes. Combined with rising jet fuel prices, these factors have significantly increased operating costs.

Despite these challenges, Singapore Airlines has reiterated its commitment to supporting Air India’s transformation in partnership with Tata. Senior leadership from both companies, including SIA CEO Goh Choon Phong and Tata Chairman Natarajan Chandrasekaran, have recently met to discuss funding strategies and leadership changes, including the search for a new chief executive following the resignation of Campbell Wilson.

The lack of clear visibility on when Air India will return to profitability remains a growing concern for Singapore Airlines. However, its deeper operational involvement signals both a strategic necessity and a long-term commitment to stabilizing and revitalizing one of the most ambitious airline turnaround efforts in the industry.

Sources: AirGuide Business airguide.info, bing.com, business-standard.com