Why Singapore Airlines is investing in Air India

The Singapore Airlines Group (SIA) has made a strategic move to invest in Air India, the new airline group created in January 2021 when Tata Sons agreed to buy Air India. This investment is part of SIA’s multi-hub strategy and will give the airline access to India’s rapidly growing aviation market. With Tata Sons consolidating its airline assets, it was expected that Vistara would be merged with Air India, and SIA has decided to take a minority stake in the larger airline. Also, SIA has committed to investing USD250 million to acquire a 20 percent stake in the new Air India Group and up to USD615 million to fund its restructuring and expansion.

India is a strategically important market for SIA and having a stake in Air India will allow the airline to increase its connectivity to Indian destinations, serve Indian passengers on international routes using Changi Airport as a transit point, and benefit from the projected growth in Indian passenger traffic over the next decade. SIA will also be able to leverage the experience of the new Air India Group’s CEO, Campbell Wilson, who is a 25-year veteran of SIA and was previously chief executive of Scoot.

The investment in Air India is an important move for SIA and will help the airline to continue participating directly in a large and fast-growing aviation market. With the strategic partnership with Tata and the acquisition of a stake in the new Air India Group, SIA is well placed to capitalize on India’s booming aviation market and continue to grow its business in the country.