According to people familiar with the situation, Singapore Airlines Ltd. is expanding its operational engagement in Air India Ltd. as the airline fights record losses and recent safety violations raise growing concerns.
According to the people who asked not to be named because they are not permitted to speak to the media, SIA has recently transferred some of its employees into Air India, putting its executives in important positions in flight operations, engineering, and maintenance—areas where the Singaporean carrier has long been regarded as a global benchmark.
The Tata Group, which controls 74.9% of Air India, is concentrating on commercial, human resources, finance, and information technology functions while depending on its minority partner for operational support, according to the people.According to the persons, SIA's involvement in India's flag carrier has significantly increased after the tragic Dreamliner crash, going from being a strategic partner to having a far more active role. Singapore Airlines increased its engineering involvement last year and has subsequently spread to other areas of Air India.
Since the Singaporean airline became a major minority partner in Air India, "we have been working closely with our partner Tata Sons to support Air India's transformation program," a Singapore Airlines representative wrote in an email. Regarding specific questions about Air India's operations and finances, the official declined to comment.
Email enquiries were not answered by representatives of Air India or Tata Sons Pvt., the group's holding company.
The deeper role coincides with the fact that Air India's resurrection, one of the most ambitious turnaround initiatives in international aviation, is turning out to be significantly more complicated and expensive than the Tata Group anticipated when it won the bid to purchase the airline from the Indian government in 2021.
Due to a number of external shocks that disrupted operations, numerous regulatory violations, and losses that reached around $2.4 billion last year, Singapore Airlines now has the necessity and incentive to take action.
Air India's performance has negatively impacted its own earnings, and the Southeast Asian airline is eager to prevent further decline of its 25.1% ownership. The airline has stated that it is "firmly committed" to working with Tata to promote Air India's transition, despite losses from affiliated firms, primarily from Air India, totalling S$178 million ($139 million) in the December quarter.
According to the people, Singapore Airlines is becoming increasingly concerned about the lack of information regarding when Air India can generate a profit.
However, bad financial results are not Air India's only problem.Aircraft flown without airworthiness certificates, European authorities pointing out compliance difficulties, and the plane tragedy that led the airline to reduce services and prompted a closer examination of engineering processes are some of the challenges it is facing.
Due to the need for longer, more costly routes during a period of rising jet fuel prices, geopolitical interruptions such as the closure of Pakistani airspace and the Middle East conflict have further increased costs.
Following Campbell Wilson's resignation, SIA CEO Goh Choon Phong and Tata Group Chairman Natarajan Chandrasekaran met in Mumbai last week to discuss a financial roadmap and the search for a new CEO, according to the Economic Times newspaper.