HomeAsiaSingapore MP opposes Temasek funding for Air India amid US$1.5 billion plea

Singapore MP opposes Temasek funding for Air India amid US$1.5 billion plea

A Singapore opposition lawmaker has urged that state investor Temasek’s money not be used to shore up Air India, after the Indian carrier had asked owners Tata Sons and Singapore Airlines, which Temasek majority-owns, for US$1.5 billion.
Kenneth Tiong, a member of parliament for the opposition Workers’ Party, said ‌in a social media post on Wednesday that because Singapore Airlines owns about 25 per cent of Air India and Temasek in turn owns most of the Singapore carrier, the request was “not only a question for private shareholders”.

“I will not support, nor expect, any future use of Temasek’s funds to prop up Air India via Singapore Airlines. If Singapore Airlines wants to continue its bet on Air India, it should do so on its own two feet, and not on Temasek’s,” ⁠he said.

“Whichever of the two writes the cheque, it will have a significant impact on Temasek,” he added, without elaborating further.

Singapore’s Ministry of Transport, Temasek, ‌Air India, Tata Sons and Tiong did not respond to emails seeking comment.

A Singapore Airlines spokesperson said its board would carefully consider any requests for additional capital from Air India, weighing the group’s other capital requirements and ‌the Indian airline’s business strategy.

Tiong said he had also filed a question for oral answer in parliament on September 8, asking the ‌transport minister whether losses from and the carrying amount in Singapore Airlines’ foreign associates have been assessed against its ⁠capacity to provide essential transport ⁠services.

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