New Delhi: Singapore Airlines (SIA) has said it is seeing “tangible progress” in Air India’s transformation and the Indian carrier continues to be a key part of its long-term multi-hub strategy despite the challenges that the Tata Group airline was facing.
The airline made the remarks while responding to shareholder and investor queries ahead of its annual general meeting (AGM) scheduled for July 24.
Responding to the query, SIA said it had undertaken a formal impairment assessment after identifying indicators that warranted a review but concluded that no write-down in Air India was necessary.
According to a filing with the Singapore Exchange, SIA reaffirmed that its 25.1 per cent stake in Air India remains a key part of its long-term multi-hub strategy, citing India’s strong aviation growth potential. As reported by The Straits Times, the airline also addressed questions on Air India’s future funding, geopolitical risks, digital services and customer experience.
SIA acknowledged that Air India continues to deal with several well-publicised challenges, including the depreciation of the Indian rupee, supply chain disruptions, closure of Pakistan’s airspace and the June 2025 plane crash that claimed 260 lives.
Despite these hurdles, the Singapore carrier said Air India has made measurable progress across key areas, including customer experience, fleet and network expansion, operational performance, and improvements to its ground and in-flight services.
SIA said its board would carefully evaluate any future request for additional capital from Air India after considering the group’s own capital requirements and Air India’s business strategy.
The airline, however, declined to comment on reports that Air India had sought a $1.1 billion capital infusion in October 2025.
SIA said, “In line with its accounting policy, the Group assesses its investment in Air India at each reporting date for any indicators of impairment, and performs a formal impairment test whenever there is objective evidence that the value of its investment in Air India may be impacted,” the airline said.
Singapore Airlines further stated that its Chief Executive Officer serves as a non-executive and non-independent director on Air India’s board, allowing the airline to provide strategic guidance and industry expertise.
(IANS)
