“We remain committed to the transformation of Air India. There is no disillusionment. It is a long-term investment that we are making, and we understand there will be challenges,” said chief executive Goh Choon Phong, during the post-result analyst and media briefing on Friday.
Now past the halfway mark, Air India’s transformation programme, initiated in September 2022, seeks to overhaul every aspect of the business, including its fleet, customer experience, operations, and internal processes.
The Air India investment enables the Singaporean flag carrier to participate directly in India’s high-growth domestic and international market across both full-service and low-cost carrier segments, it said in an investor presentation.
The customer confidence in the airline remains intact despite the fatal Ahmedabad crash, he said, adding Singapore Airlines has had a “lot of interaction and engagement (with Air India)” and has been “helping (out) whenever needed”.
The Singaporean national carrier saw a 67.8% year-on-year drop in net profit to S$239 million for the April-September period. It attributed the decline to accounting losses from associated companies, including Air India, and lower interest income.
Following the merger of Vistara—the joint venture between the Tata group and Singapore Airlines—into Air India in November 2024, Singapore Airlines acquired a 25.1% stake in the combined entity and secured one seat on its board. The conglomerate acquired the Indian national carrier in 2022.
Goh Choon Phong now serves on the Air India board, where Tata Sons holds the majority stake of 74.9%.
A happy union
This would be the first time Singapore Airlines is accounting for losses at the Indian carrier in 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 clarified.
Mint couldn’t directly ascertain losses attributable to Air India, as the airline continues to be privately held, with results being declared annually to the ministry of corporate affairs.
For the year ended 31 March 2025, the Tata-owned airline posted a 15% rise in revenue to ₹78,636 crore, but widened net loss 48% to ₹10,859 crore on-year. The consolidated entity comprises Air India, Vistara, Air India Express, and AIX Connect, and 2045-25 marks the first time its financials are reported as a single, merged group.
Phong highlighted that Air India faced significant challenges in 2025, which were beyond its control, including the June crash.
The crash necessitated a “safety pause”, resulting in a capacity cut as aircraft were grounded for checks and maintenance, significantly shrinking the fleet and slowing international and long-haul operations. The restoration began in October, he said.
Airspace closures in Pakistan and West Asia also impacted operations, particularly on long-haul routes, resulting in increased fuel consumption and costs.
The rupee’s fall against the US dollar, too, has had a significant impact. Air India’s chief executive, Campbell Wilson, who previously headed Singapore Airlines’ low-cost carrier Scoot, said earlier this year that a continued closure of Pakistan airspace for a year would result in ₹4,000 crore of losses.
When asked if there was any chance of a stake hike or further capital infusion into the Indian carrier, the CEO replied, “These are discussions between shareholders.”
“Board representation is in proportion to shareholding. But we continue to have a strong, engaging relationship (with Air India). There is no lack of interaction. It is not what we are concerned about.”
Singapore Airlines has invested over ₹6,300 crore in the merged airline’s recapitalization plan.
