Singapore Airlines is increasing its operational role within Air India as the airline faces mounting losses and increased scrutiny in the wake of recent safety concerns.
The Singapore airline has begun consolidating its staff into Air India, placing executives in vital functions such as flight operations, engineering and maintenance in recent months, Bloomberg reported.
These are areas where Singapore Airlines has long been considered a global standard.
The Tata Group, which owns 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 Singapore Airlines’ involvement
The move signals a significant deepening of Singapore Airlines’ involvement, especially after the deadly Dreamliner crash.
What was once a strategic partnership is now evolving into a more operational role within the Indian flag carrier. Singapore Airlines had already ramped up its involvement in the past year, initially through engineering support, before expanding into other areas.
“We have worked 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 Singapore Airlines spokesperson said in an emailed statement.
The expanded participation comes as Air India’s turnaround, one of the most ambitious in global aviation, has proven more difficult and costly than expected when the Tata Group reacquired the airline from the Indian government in 2021.
The report added that losses rose to about $2.4 billion over the past year, in addition to recurring regulatory gaps and external disturbances. For Singapore Airlines, the situation has created a state of urgency and financial exposure.
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Air India’s profits were affected, as were the operational challenges
Its earnings have already been affected by Air India’s performance. The airline previously said losses from associated businesses – largely linked to Air India – amounted to S$178 million ($139 million) in the December quarter, although it remains “firmly committed” to supporting the carrier’s revival alongside Tata.
The Bloomberg report added that uncertainty about when Air India might return to profitability has become a growing concern.
Operational challenges extend beyond finances. The airline has faced issues including operating aircraft without valid airworthiness certificates, compliance concerns raised by European regulators, the aftermath of a plane crash that led to service disruptions and close scrutiny of maintenance practices.
Geopolitical factors have exacerbated these difficulties. The closure of Pakistani airspace and ongoing tensions in the Middle East have forced longer and more expensive 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 the financing roadmap and search for a new CEO, following Campbell Wilson’s resignation.
