SIA commits to long-term growth of Air India, to evaluate additional capital infusion
Singapore Airlines (SIA) has reaffirmed its long-term commitment to Air India, stating it will evaluate future capital infusion requests based on its disciplined financial framework. This follows reports questioning the viability of the airline's turnaround plan amid mounting losses.
Why it matters
SIA's continued support is critical for the stability of Air India as it undergoes a massive restructuring under Tata Sons ownership.
With question marks being raised on Air India’s future amidst mounting losses and delay in it’s turnaround plan, Singapore Airlines (SIA) has reposed it’s long-term commitment for Air India in which it holds 25.1% stake.
It said its investment in Air India received the full attention of its board and any requests for additional capital for Air India will be evaluated under the group’s disciplined capital allocation framework.
This is considering Air India’s business strategy, the group’s operating cash flow and the investment requirements for new aircraft and products, SIA said in a Letter to the Editor of the Singapore based The Business Times .
The publication has come out with an article “Singapore Airlines faces some bleak choices as it lies trapped in Air India’s money pit.”
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