Will carefully weigh funding requests from Air India: SIA

Synopsis

The Singapore Airlines board is set to deliberate on Air India's appeals for capital, with particular attention to investor concerns regarding potential losses. Air India has recently announced significant fiscal year losses, prompting SIA to stress that its investment is vital for its India growth strategy. A disciplined evaluation process will guide their capital allocation decisions, aiming for long-term sustainability in operations.

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Mumbai: Singapore Airlines (SIA) said its board will carefully consider any request for additional capital from Air India, weighing it against the group's operating cash flows, aircraft investments and other capital needs. This follows investors of SIA seeking clarity on its exposure to loss-making Air India ahead of the former's AGM.

The Securities Investors Association (Singapore), the city-state's leading retail investor advocacy group, has queried SIA after the carrier reported a S$945.2 million (₹7,058 crore) share of losses from Air India in the fiscal year ended March 31, reducing the carrying value of its 25.1% stake to S$1.13 billion from S$2.02 billion a year earlier. Even so, SIA reiterated that its investment in the carrier remains a cornerstone of its long-term India strategy.

The airline said its capital allocation follows a "disciplined evaluation process" that considers operating cash flow, investments in new aircraft and products, alongside strategic investments such as Air India to support sustainable long-term growth and returns.