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Temasek backs Singapore Airlines’ Air India investment amid growing scrutiny

Singapore state investor Temasek, the ⁠majority shareholder of Singapore Airlines , on Saturday backed the airline’s investment in Air India, as scrutiny grows over its…

By Samantha Johnson / August 29, 2026
Singapore state investor Temasek, the ⁠majority shareholder of Singapore Airlines , on Saturday backed the airline’s investment in Air India, as scrutiny grows over its stake in the loss-making Indian carrier.

Air India’s request for about US$1.5 billion in fresh equity from owners Tata Sons and Singapore Airlines was ‌first reported by Reuters this week. Singapore Airlines owns 25.1 per cent of India’s second-largest airline, with the rest owned by Tata.

News of the funding request prompted Kenneth Tiong, a lawmaker from Singapore’s opposition Workers’ Party, to urge that Temasek’s funds not be used to shore up the Indian carrier.

Singapore’s Business Times also ran a commentary arguing that Singapore Airlines could not realistically ⁠exit its Air India stake, with Tata the only plausible buyer. It questioned what its 25.1 per cent holding ‌offered beyond a board seat and a share of the losses, while saying the strategic logic of the investment still held.

An Air India Airbus A350 at Begumpet airport, Hyderabad, India in 2024. Singapore Airlines owns 25.1 per cent of India’s second-largest airline, with the rest owned by Tata. Photo: Reuters
An Air India Airbus A350 at Begumpet airport, Hyderabad, India in 2024. Singapore Airlines owns 25.1 per cent of India’s second-largest airline, with the rest owned by Tata. Photo: Reuters

In a letter to the newspaper ‌responding to that commentary, Juliet Teo, joint head of portfolio development at Temasek Singapore, said ⁠Temasek viewed Singapore ⁠Airlines’ decision to invest in Air India from a long-term perspective and was supportive of it.

The letter said the transformation of ‌Air India involved complex, multi-year operational and integration challenges, with outcomes shaped by industry developments and external factors such as airspace disruptions, geopolitical ‌developments and ‌fuel price volatility.

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