Air India is reportedly seeking around US$1.5 billion (S$1.9 billion) in fresh funding from its owners, Tata Sons and Singapore Airlines (SIA), as the Indian carrier continues efforts to turn around its financial performance.
The funding request has attracted attention in Singapore because SIA holds about 25% of Air India, while Temasek is SIA’s largest shareholder.
Workers’ Party MP Kenneth Tiong has criticised the prospect of further support through SIA, saying that Singaporeans should not be expected to fund the airline’s losses.
Air India Reportedly Seeks S$1.9B From Owners
According to Reuters, Air India has asked Tata Sons and SIA for US$1.5 billion in fresh equity funding. The money could reportedly be provided in stages, with SIA potentially contributing according to its shareholding.
Air India has been undergoing a major transformation since Tata Group took control of the airline. The long-term turnaround includes efforts to modernise its fleet, improve operations and strengthen its international network.
However, the carrier has continued to face substantial financial challenges.
Air India and Air India Express reportedly recorded combined losses of US$2.33 billion for the financial year ended March 2026, highlighting the scale of the challenges facing the group.
Air India Losses Affect SIA’s Results
Air India’s financial difficulties have also had an impact on Singapore Airlines.
For the financial year ended March 2026, Air India recorded a loss of about S$3.56 billion. SIA’s share of the losses contributed to weaker financial results for the Singapore carrier.
SIA subsequently reported a S$76 million net loss for the first quarter of its 2026/27 financial year, despite recording quarterly revenue of S$5.71 billion.
The airline attributed the weaker performance partly to higher fuel costs and losses associated with Air India.
The reported funding request therefore comes at a time when investors and policymakers are watching closely to see how much more capital may be required to support Air India’s turnaround.
Kenneth Tiong Says ‘No One Owes Air India A Living’
Mr Tiong has voiced strong opposition to any future use of Temasek funds to support Air India through Singapore Airlines.
In a Facebook post, the Workers’ Party MP wrote: “No one, least of all Singaporeans, owes Air India a living.”
He also said he would not support, nor expect, any future use of Temasek’s funds to prop up Air India through SIA.
Mr Tiong argued that if SIA chooses to continue investing in Air India, it should do so using its own resources rather than relying on Temasek.
His comments come because of the indirect relationship between the Singapore state investment company and Air India. Temasek is SIA’s largest shareholder, while SIA owns approximately 25% of Air India.
MP To Raise Air India Questions In Parliament
Mr Tiong has also filed an oral question for the parliamentary sitting on 8 September.
He intends to ask the Transport Minister whether Air India’s losses have been assessed against SIA’s ability to provide essential transport services.
He also plans to ask whether Air India’s losses could trigger notification obligations connected to SIA’s designated status under the Civil Aviation Authority of Singapore Act.
The questions could provide an opportunity for the Government to clarify the relationship between SIA’s investment decisions, its responsibilities as a designated airline and the interests of its shareholders.
SIA has said it is working closely with Tata Sons to support Air India’s transformation programme, although it has not commented on the reported US$1.5 billion funding request.
Air India Turnaround Could Take Years
Tata Sons chairman N Chandrasekaran has previously indicated that turning Air India around could take up to a decade.
The airline has faced numerous challenges during the process, including disruptions to its international network, restrictions resulting from Pakistan’s airspace ban on Indian carriers and the aftermath of a deadly 2025 aircraft crash.
Reuters has also reported that Air India could require further capital injections in the coming years as it continues its restructuring.
For SIA, the latest funding request could therefore become another significant financial consideration as it weighs the long-term potential of the Indian aviation market against the continuing costs of its Air India investment.
The amount SIA may ultimately contribute, if any, will depend on the final funding arrangements agreed between the airline’s shareholders. For now, discussions remain ongoing, while Mr Tiong’s parliamentary questions are expected to bring further attention to the issue in Singapore.