Air India seeks $1.5bn equity from Tata Sons and SIA
Air India is seeking $1.5 billion in fresh equity from Tata Sons and Singapore Airlines, after both Tata Sons and SIA were asked to help out.
The move comes as Air India faces big financial losses, and has sparked debate in Singapore's Parliament, especially from opposition MP Kenneth Tiong, who wants the government to explain why Temasek, Singapore's government-owned investment firm and majority shareholder in Singapore Airlines, should be involved.
Kenneth Tiong urges SIA avoid Temasek
Tiong thinks SIA should handle any future investments in Air India on its own, without relying on Temasek's funds.
Meanwhile, SIA says it takes a careful approach to spending and considers things like cash flow and investment requirements in new aircraft as well as multi hub investments such as Air India to support sustainable long-term growth and returns before making big decisions like this.
All eyes are now on how SIA will respond, and what it means for Air India's future.