Singapore Airlines acquires 25.1 percent stake in Air India

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Singapore Airlines (SIA) finalized a 25.1 percent stake in the Air India Group, marking the culmination of a multi-decade pursuit to enter the Indian aviation market. This partnership evolved from a failed 1995 joint venture attempt and a 2013 collaboration with Tata Sons to launch Vistara. The move followed a 2012 policy shift by the Indian government that allowed foreign airlines to acquire up to 49 percent of domestic carriers. SIA’s commitment persists despite Air India posting a record US$2 billion loss in the previous financial year.

Consequences

SIA reported a net loss of S$76 million in the first quarter of 2026, partly attributed to the financial performance of the Air India Group. Given that Air India is reportedly seeking an additional US$1.5 billion in fresh equity, SIA may face a prolonged period before the investment generates positive returns.

Sources

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