Temasek backs SIA's Air India investment amid funding talks

Delhi : Temasek has backed Singapore Airlines' continued investment in Air India as the Indian carrier seeks additional capital to support its ongoing transformation, according to reports.

The development comes after Air India reportedly approached its shareholders for about USD 1.5 billion in fresh equity funding. The proposal is being discussed by Tata Sons and Singapore Airlines, which own the airline jointly.

Singapore Airlines holds a 25.1 percent stake in Air India, with Tata Sons controlling the remainder. The Singaporean carrier became a shareholder following Tata Group's takeover of Air India and its subsequent restructuring.

The potential funding comes as Air India continues to face financial pressure despite an extensive turnaround program. Air India and Air India Express recorded significant combined losses for the financial year ended March 2026.

Any new equity injection would require Singapore Airlines to contribute alongside Tata Sons according to their respective ownership stakes. The funding proposal has not been finalized and could potentially be provided in stages.

Air India is investing heavily in fleet modernization, technology, operational improvements and passenger services. The airline has also placed major aircraft orders with Airbus and Boeing, although delivery delays and supply-chain constraints have created additional challenges.