Singapore Airlines to seek tougher terms for any fresh Air India funding: Report
Singapore Airlines wants stronger board rights and performance targets before adding capital as Air India seeks about $1.5 billion in fresh equity, people said.
- Singapore Airlines is seeking tougher terms for any fresh Air India funding, as the Indian carrier posted a US$2.33 billion loss in the financial year ended March.
- Under a 2022 merger agreement, Singapore Airlines folded its 49 per cent-owned Vistara into Air India, securing a single board seat and a stake of more than 25 per cent.
- Air India appointed former Ethiopian Airlines head Tewolde Gebremariam as CEO on Tuesday, replacing Campbell Wilson, while Singapore Airlines stated its investments are funded by US$8.29 billion in internal cash reserves.
- Senior Minister K Shanmugam said on Saturday that investment decisions lie solely with Singapore Airlines, though Temasek has publicly backed the carrier's long-term strategy in the Indian market.
- Long-Term aviation growth in India remains the strategic focus, despite turnaround risks that Tata noted could take up to a decade; Temasek has previously supported similar bets on Indian companies like Manipal Health.
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Singapore Airlines, which has the sovereign Temasek fund as the main shareholder, must demand greater influence on management and more rigid rules of corporate governance before approving a new capital contribution in Air India, according to two people in the know of the deals. Exclusive material for subscribers. To have full access, access the link of the subject and register.
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PressNewsAgencySingapore Airlines to seek tougher terms for any fresh Air India funding, sources say
Singapore Airlines, backed by Temasek, is expected to seek greater influence over management and stronger governance rights before approving a capital injection into Air India, said two people familiar with the matter.The proposed conditions, which would be negotiated with Air India's majority owner Tata Sons
EXCLUSIVE: Singapore Airlines to seek tougher terms for any fresh Air India funding, sources say
Singapore Airlines , backed by state investor Temasek, is expected to seek greater influence over management and stronger governance rights before approving a capital injection into Air India, said two people familiar with the matter.
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