Singapore Airlines Deepens Role At Air India After Carrier Recorded Rs 22k Crore Loss

After Air India posted a record loss of nearly Rs 22,000 crore, largely led by rising jet fuel prices, airspace trouble, and operational issues, Singapore Airlines Ltd has increased its operational involvement in the Indian-flag carrier as per people familiar with the matter, citing a Bloomberg report.

The five-star airline has shifted some of its personnel into Air India, handling pertinent roles across flight operations, engineering, and maintenance in recent months, including departments wherein SIA has set the benchmark.  

Tata Group, which holds 74.9% stake in Air India, is relying on SIA for human resources, commercial, finance and information technology functions,

This points out to a higher involvement from SIA since the horrific Dreamliner crash. Singapore Airlines had increased its involvement last year with engineering and has since then expanded across other functions at Air India.

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“We have been working closely with our partner Tata Sons to support Air India’s transformation programme” since the Singaporean carrier became a significant minority partner in the carrier, a spokesperson for Singapore Airlines said in an emailed statement. The representative declined to comment on specific queries on Air India’s finances and operations.

The deepening of its operational control when Air India's privatisation to revive the airline is proving far more meticulous since 2021.

Tata Group, which controls Air India and Singapore Airlines, which owns a 25.1% stake, are reportedly in discussions to infuse fresh funds. However, the amount being considered may not be enough to fully cover what the airline needs.

The stakes are high for Tata Group beyond the revival of the passenger carrier as reportedly reducing Air India's losses is one of the conditions linked to a third term for Tata Group Chairman N Chandrasekaran.