Singapore Airlines Steps In: The Big Plan to Fix Air India’s Losses

Singapore Airlines is stepping up its role in Air India by placing its own executives and technical experts into key operational areas. The focus is on improving flight operations, engineering, maintenance, and safety—areas where Air India has been facing serious challenges.

This move comes after SIA secured a 25.1% stake in Air India following the 2024 merger of Vistara with Air India. While the Tata Group retains majority control, SIA now has a stronger strategic influence, including representation on the airline’s board.

Air India is currently dealing with a difficult phase. The airline is expected to post massive losses of around ₹20,000–22,000 crore for FY26. Rising fuel costs, rupee depreciation, airspace restrictions due to geopolitical tensions, and heavy spending on fleet expansion have all contributed to the financial strain.

On top of that, safety concerns have emerged, with audits highlighting recurring technical issues, maintenance gaps, and compliance shortcomings—drawing attention from regulators like the Directorate General of Civil Aviation.

The situation worsened after a tragic crash in 2025 that resulted in significant loss of life, intensifying scrutiny on safety standards. Leadership has also seen changes, with former CEO Campbell Wilson stepping down amid these challenges.

To stabilize operations, SIA has begun deploying experienced personnel and leveraging its technical arm, SIA Engineering Company, to support maintenance improvements. High-level discussions between SIA CEO Goh Choon Phong and Tata leadership, including Chairman Natarajan Chandrasekaran, are focused on long-term strategy, funding, and executing a turnaround plan.

This effort is also part of a broader commercial partnership signed in 2026, aimed at strengthening codeshare agreements, expanding routes (especially between India and Singapore), aligning schedules, and enhancing customer programs under the Star Alliance network.

Since its acquisition by Tata in 2022, Air India has been undergoing a major transformation, including fleet modernization and service upgrades.

However, integration challenges, merger complexities, and external pressures have slowed progress. With SIA now taking a more hands-on role, its globally recognized operational discipline and safety standards could play a critical role in accelerating Air India’s turnaround.