Mumbai: Singapore Airlines is expanding its operational involvement in Air India, moving beyond its position as a strategic investor as the Tata Group-owned airline faces mounting financial losses and operational challenges. According to a report by Bloomberg, the decision reflects growing urgency to stabilise performance and address rising concerns around safety and efficiency.
In recent months, Singapore Airlines has deployed several senior executives into key operational roles within Air India, particularly in flight operations, engineering, and maintenance. These areas are widely considered strengths of the Singapore-based carrier, known globally for its high aviation standards. The move marks a shift from advisory support to a more hands-on operational role, signalling a deeper commitment to Air India’s transformation.
The development follows an earlier expansion of collaboration in engineering functions last year, indicating a phased increase in Singapore Airlines’ influence within the airline’s core operations.
Operational overhaul gains urgency
The Tata Group, which reacquired Air India in 2021 and holds a 74.9 per cent stake through Tata Sons, continues to focus on business-side functions such as finance, human resources, information technology, and commercial strategy. Meanwhile, Singapore Airlines, which owns a 25.1 per cent stake, is increasingly taking charge of operational domains.
This division of responsibilities reflects a strategic approach to restructuring, with operational expertise being leveraged from Singapore Airlines while Tata Group strengthens corporate and financial frameworks.
However, the scale of the challenge remains significant. Air India reportedly recorded losses of about $2.4 billion (over ₹20,000 crore) last year, underlining the complexity of its turnaround. The financial strain has also impacted Singapore Airlines, which reported losses from associated companies—largely driven by Air India—at S$178 million (around ₹1,150 crore) in the December quarter.
A spokesperson for Singapore Airlines stated that the airline has been working closely with Tata Sons to support Air India’s transformation programme since becoming a key minority stakeholder.
Safety concerns intensify scrutiny
Beyond financial pressures, Air India has faced a series of operational and regulatory setbacks that have raised concerns among stakeholders and regulators. These include reported instances of aircraft operating without valid airworthiness certification and compliance issues flagged by European aviation authorities.
The situation has been further complicated by the aftermath of a recent aircraft crash in Ahmedabad, which led to service reductions and heightened scrutiny of safety protocols. These developments have increased the urgency for operational reforms and stricter compliance measures.
Singapore Airlines’ decision to deploy experts in critical technical areas is seen as an effort to strengthen safety oversight and align Air India’s processes with global best practices.
External pressures add to challenges
Air India’s difficulties have also been exacerbated by external factors beyond its control. Airspace restrictions, including closures over Pakistan, have forced airlines to take longer routes, increasing operational costs. Additionally, geopolitical tensions in the Middle East have added further uncertainty to international flight operations.
These challenges come at a time when jet fuel prices remain elevated, putting additional pressure on margins. The combination of higher costs and operational inefficiencies has made the path to profitability more complex for the airline.
Reports indicate that senior leadership from both stakeholders are actively working to address these issues. Singapore Airlines CEO Goh Choon Phong and Tata Group Chairman Natarajan Chandrasekaran recently met in Mumbai to discuss funding strategies and leadership changes. This includes the search for a new chief executive following the resignation of Campbell Wilson.
Conclusion
Singapore Airlines’ increasing involvement in Air India underscores the seriousness of the challenges facing the airline’s turnaround. While the collaboration brings valuable operational expertise, the road ahead remains complex, with financial losses, safety concerns, and external pressures continuing to weigh on performance. The success of this partnership will likely depend on how effectively both stakeholders align strategy and execution in the months ahead.