Site icon IIMT NEWS, Hindi news, हिंदी न्यूज़ , Hindi Samachar, हिंदी समाचार, Latest News in Hindi, Breaking News in Hindi, ताजा ख़बरें

Singapore Airlines steps in as Air India losses swell to $2.4 billion

Prafull Sharma (Greater Noida)
Singapore Airlines is increasing its operational role within Air India as the airline grapples with mounting losses and heightened scrutiny following recent safety concerns The Singaporean carrier has begun embedding its own personnel within Air India, placing executives in critical functions such as flight operations, engineering, and maintenance in recent months, Bloomberg reported. Meanwhile, Tata Group, which holds a 74.9% stake in Air India, is focusing on commercial strategy, human resources, finance, and information technology, the report added evolving into a more hands-on operational role within India’s national carrier. Singapore Airlines had already stepped up engagement last year, initially through engineering support, before expanding into other areas.
“We have been working 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 spokesperson for Singapore Airlines said in an emailed statement.
The expanded involvement comes as Air India’s turnaround, one of the most ambitious in global aviation, proves more difficult and expensive than anticipated when Tata Group reacquired the airline from the Indian government in 2021. Losses have surged to around $2.4 billion over the past year, alongside repeated regulatory lapses and external disruptions, the report added. For Singapore Airlines, the situation has created both urgency and financial exposure. Its earnings have already been impacted by Air India’s performance. The airline previously reported that losses from associated companies – largely linked to Air India – reached S$178 million ($139 million) in the December quarter, though it remains “firmly committed” to supporting the carrier’s revival alongside Tata. Operational challenges extend beyond finances. The airline has faced issues including aircraft operating without valid airworthiness certificates, compliance concerns raised by European regulators, and the aftermath of a plane crash that led to service cuts and closer scrutiny of maintenance practices.
Geopolitical factors have compounded these difficulties. The closure of Pakistani airspace and ongoing tensions in the Middle East have forced longer, costlier 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 a funding roadmap and the search for a new chief executive, following the resignation of Campbell Wilson.

Exit mobile version