Singapore state investor Temasek has expressed its support for Singapore Airlines' investment in Air India, amidst growing scrutiny over the airline's exposure to the financially struggling Indian carrier. Air India has recently requested approximately $1.5 billion (US$1.5 billion) in fresh equity from its owners, Tata Sons and Singapore Airlines, which holds a 25.1% stake in the airline.

The funding request has sparked debate in Singapore, with opposition lawmaker Kenneth Tiong urging that Temasek funds not be used to support Air India. Concerns have been raised about the value of Singapore Airlines' stake, beyond board representation and exposure to the airline's losses.

Juliet Teo, joint head of portfolio development at Temasek, stated in a letter to Singapore's Business Times that the investment should be viewed from a long-term perspective. She acknowledged the complex, multi-year operational and integration challenges involved in Air India's transformation, which is influenced by factors such as airspace disruptions and geopolitical developments.

Air India's restructuring has been ongoing since the Tata Group took control in 2022, with the merger of Vistara into Air India in 2024. The airline has faced challenges, including airspace restrictions and geopolitical tensions, impacting its operations.

Despite Air India and its budget subsidiary reporting combined losses of $2.33 billion (US$2.33 billion) in the year ended March, Singapore Airlines remains committed to assessing any further capital requests. The airline's board will consider Air India's business strategy and its own capital requirements before making any decisions on additional funding.

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