Singapore Airlines is seeking tougher terms, including greater influence over management and stronger governance rights, before backing any new capital injection for Air India. The move comes as the Indian carrier looks for fresh equity support from its owners to help cover losses and support its turnaround, while Singapore Airlines weighs a larger role in how the airline is run.
The discussions are expected to be handled with Tata Sons, Air India’s majority owner, and may include additional board voting power and clearer performance targets. Air India has been seeking roughly $1.1 billion to $1.5 billion in new equity support, although the amount varies across reports. Singapore Airlines currently holds 25.1% of Air India following the Vistara merger and has only one board seat through its chief executive.
Singapore Airlines is reviewing any request within its capital allocation framework and using internal resources for its India investments. Singapore’s government has also made clear it will not intervene in the airline’s decision on whether to commit more money, leaving the matter to the board. Cash and undrawn credit lines at the airline totalled about S$13.72 billion at the end of June, according to recent local coverage.