We remain committed to the Air India transformation: Singapore Airlines CEO
For Singapore Airlines, which owns a quarter of Air India, there is “no disappointment” about the investment, even as the Indian carrier’s losses put pressure on its profitability.
“We remain committed to the transformation of Air India. There are no disappointments. It is a long-term investment we are making and we understand there will be challenges,” CEO Goh Choon Phong said at the post-results analyst and media briefing on Friday.
Now past the halfway point, Air India’s transformation program, launched in September 2022, aims to overhaul every aspect of the business, including its fleet, customer experience, operations and internal processes.
The investment in Air India will enable the Singapore flag carrier to directly participate in India’s fast-growing domestic and international market in both full-service and low-cost carrier segments, the investor presentation said.
Despite the fatal Ahmedabad crash, customers’ trust in the airline remains intact, he said, adding that Singapore Airlines “has a lot of interaction and interaction (with Air India)” and “helps whenever needed”.
The Singaporean national carrier saw a 67.8% year-on-year drop in net profit to S$239 million in the April-September period. He attributed the decline to accounting losses associated companies, including Air India, and lower interest income.
Following the merger of Vistara, a joint venture between the Tata group and Singapore Airlines, with Air India in November 2024, Singapore Airlines acquired a 25.1% stake in the combined entity and secured a seat on the board. The conglomerate acquired the Indian national carrier in 2022.
Goh Choon Phong currently serves on the board of Air India, where Tata Sons holds a 74.9% majority stake.
A happy union
This would be the first time Singapore Airlines has been accounting for the Indian carrier’s losses on its books. “These are accounting losses and do not have a material impact on our cash flow. We continue to have one of the strongest balance sheets,” Phong explained.
Mint We were unable to directly identify losses attributable to Air India as the airline remains privately owned and the results are disclosed to the ministry of corporate affairs every year.
For the year ending March 31, 2025, the Tata-owned airline reported a 15% increase in revenue. ₹78,636 crore, but took the net loss to 48% ₹10,859 crore annually. The consolidated entity comprises Air India, Vistara, Air India Express and AIX Connect, and 2045-25 was the first time its financial statements were reported as a single consolidated group.
Phong emphasized that Air India faces significant challenges beyond its control in 2025, including the June crash.
The crash required a “safety pause”; This resulted in reduced capacity, a significant shrinkage of the fleet and a slowdown of international and long-haul operations as aircraft were grounded for checks and maintenance. He said the restoration would begin in October.
The closure of airspace in Pakistan and West Asia also affected operations, especially on long-haul routes, resulting in increased fuel consumption and costs.
The fall of the rupee against the US dollar also had a significant impact. Air India chief executive Campbell Wilson, who previously headed Singapore Airlines’ low-cost carrier Scoot, said earlier this year that the year-long permanent closure of Pakistani airspace had ₹4,000 crore is lost.
When asked if there was a possibility of a share increase or further capital infusion into the Indian carrier, the CEO replied: “These are discussions among shareholders.”
“Board representation is commensurate with shareholding. But we continue to have a strong and interesting relationship with Air India. There is no lack of interaction. That is not what concerns us.”
Singapore Airlines invested ₹6,300 crore in the merged airline’s recapitalization plan.
