Temasek backs SIA's Air India stake despite $1.5bn ask
Temasek, Singapore's state investor and a major backer of Singapore Airlines (SIA), is sticking with SIA's investment in Air India, even as the airline just asked owners for $1.5 billion more to fund its turnaround.
SIA owns about a quarter of Air India, while Tata Sons holds the rest, and some are questioning whether Temasek should keep supporting these cash calls.
Juliet Teo says investment fits SIA
Juliet Teo, joint head of portfolio development at Temasek Singapore, says this investment fits SIA's long-term game plan, even if it means facing tough integration challenges and unpredictable issues like airspace disruptions or fuel price spikes.
For context, Air India and its budget arm posted combined losses of $2.33 billion in the year to March, which hit SIA's profits too.
Still, SIA says it will carefully review any new funding requests to balance its own priorities with Air India's future plans.