Singapore Airlines is increasing its operational role within Air India as the airline grapples with mounting losses and heightened scrutiny following recent safety concerns.
The Singaporean carrier has begun embedding its own personnel within Air India, placing executives in critical functions such as flight operations, engineering, and maintenance in recent months, Bloomberg reported.
These are areas where Singapore Airlines has long been regarded as a global benchmark.
Meanwhile, Tata Group, which holds a 74.9% stake in Air India, is focusing on commercial strategy, human resources, finance, and information technology, the report added.
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Deepening of Singapore Airlines involvement
The move signals a significant deepening of Singapore Airlines’ involvement, particularly after the fatal Dreamliner crash.
What was once a strategic partnership is evolving into a more hands-on operational role within India’s national carrier. Singapore Airlines had already stepped up engagement last year, initially through engineering support, before expanding into other areas.
“We have been working closely with our partner Tata Sons to support Air India’s transformation programme” since the Singaporean carrier became a significant minority partner in the airline, a spokesperson for Singapore Airlines said in an emailed statement.
The expanded involvement comes as Air India’s turnaround, one of the most ambitious in global aviation, proves more difficult and expensive than anticipated when Tata Group reacquired the airline from the Indian government in 2021.
Losses have surged to around $2.4 billion over the past year, alongside repeated regulatory lapses and external disruptions, the report added. For Singapore Airlines, the situation has created both urgency and financial exposure.
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Air India’s earnings impacted, operational challenges too
Its earnings have already been impacted by Air India’s performance. The airline previously reported that losses from associated companies – largely linked to Air India – reached S$178 million ($139 million) in the December quarter, though it remains “firmly committed” to supporting the carrier’s revival alongside Tata.
Uncertainty over when Air India might return to profitability is becoming an increasing concern, Bloomberg report added.
Operational challenges extend beyond finances. The airline has faced issues including aircraft operating without valid airworthiness certificates, compliance concerns raised by European regulators, and the aftermath of a plane crash that led to service cuts and closer scrutiny of maintenance practices.
Geopolitical factors have compounded these difficulties. The closure of Pakistani airspace and ongoing tensions in the Middle East have forced longer, costlier flight routes, adding pressure amid rising jet fuel prices.
According to reports, Singapore Airlines CEO Goh Choon Phong and Tata Group Chairman Natarajan Chandrasekaran recently met in Mumbai to discuss a funding roadmap and the search for a new chief executive, following the resignation of Campbell Wilson.
