Air India remains under financial scrutiny as Temasek backs the long game

Singapore state investor Temasek has publicly backed Singapore Airlines’ strategic investment in Air India, despite growing scrutiny of the Indian carrier’s finances.

Air India has reportedly sought approximately US$1.5 billion in fresh equity from its owners, Tata Sons and Singapore Airlines, which holds a 25.1% stake.

Air India and Air India Express reported combined losses of approximately US$2.33 billion in the financial year to March.

Temasek argued that Air India‘s transformation is a complex, multi-year project affected by fuel prices, geopolitical developments and airspace disruption.

For the B2B market: The outcome matters enormously. Air India‘s ability to build a globally competitive network will influence India’s international connectivity, long-haul capacity and the competitive response from IndiGo and Gulf carriers.