SINGAPORE: Singapore Airlines had no illusions about the challenges of its long-term investment in Air India, CEO Goh Choon Phong said during a results briefing in November 2025.

Two years into the venture, SIA faces some bleak choices. Air India posted losses of US$2.33 billion in the fiscal year ended March, more than double the prior year, and is reportedly seeking US$1.5 billion in fresh equity from owners Tata and SIA.

That could work out to almost US$380 million based on SIA’s 25.1 per cent stake of the enlarged Air India, after the Indian flag carrier merged with SIA’s co-owned Vistara in 2024. Tata is the biggest shareholder with 74.9 per cent. 

This comes as SIA itself posted a net loss S$76 million (US$59.6 million) loss in the first quarter of 2026, despite record revenue. As losses mount, there is a growing chorus of voices calling for SIA to write off the investment and walk away rather than throw good money after bad.

INDIA MARKET IS WORTH THE EFFORT

The concerns are not misplaced – but neither do they make walking away the best option.

Yes, Air India faces substantial business and operational crosswinds: the prolonged Pakistan airspace closure to Indian carriers, the depreciation of the Indian rupee against the US dollar, the loss of key markets due to the Middle East conflict, sustained high fuel prices and intransigent corporate culture. Then there is the reputational and financial impact of the tragic AI171 crash in June 2025.

Most recently in August, respected Tata Group Chairman N Chandrasekaran – who had been instrumental in stitching together the Tata-SIA partnership – announced plans to step down in February 2027 following months of disagreements with the group's controlling charitable trust, partly over Air India's losses. 

Nor can SIA ignore its own les...