Siow Defends SIA's Air India Stake Against WP Scrutiny — SkimNews
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- Jeffrey Siow told parliament on Sep 8 that SIA's ability to serve Singaporeans is not affected by its 25.1% Air India stake, responding to WP MP Kenneth Tiong's questions on whether foreign-asset losses could trigger a CAAS notification under the Civil Aviation Authority of Singapore Act.
- Siow said Air India's losses do not automatically become SIA's liabilities, stressing that SIA's current liabilities sit "well within" cash reserves of S$10.48 billion as of Jun 30, 2026, and that SIA's debt is mostly long-term, low-interest five- or 10-year bonds.
- Siow accused Tiong of drawing "tenuous linkages" between SIA's overseas investment and domestic air services, saying the MP insinuated Singaporeans "owe Air India a living" and suggesting the board and management of SIA should make investment decisions.
- Tiong noted SIA posted a net loss for the quarter ending Jun 30 and is in net debt, while Air India's losses doubled last year against a longer-than-usual five-year turnaround plan, and asked whether the government would rule out direct Temasek support if the deal "goes wrong".
- Tiong flagged Indian market risks including IndiGo's 67% domestic share and potential entries by Adani and GMR, and stressed that SIA's minority stake gives it no operational control over Air India.
- SIA cited Air India headwinds — prolonged closure of Pakistani airspace to Indian carriers, last year's Air India crash, rupee depreciation, supply chain disruptions, Middle East conflict market loss and high fuel prices — while noting Air India's net promoter score has risen 70+ points since November 2022.
- Temasek manages a portfolio over S$500 billion and SIA has only requested funding from it once in over 50 years — during COVID-19, when the government supported the entire aviation sector.
Why it matters: For taxpayers watching the public purse, Siow drew a hard line: SIA funds Air India from its own S$10.48 billion cash pile, and Temasek — which manages over S$500 billion — only steps in if they cross into SIA's core fleet and network operations in Singapore, a threshold he said is nowhere near being reached despite Air India seeking another US$1.5 billion from owners Tata Sons and SIA.
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