Timeline: How SIA's India bet led to a 25.1% stake in Air India
SIA’s pursuit of India’s aviation market spans more than three decades. CNA traces how its partnership with Tata led to the launch of Vistara and ultimately a significant minority stake in Air India.
An Air India Airbus A320-200 (left) and a Singapore Airlines aircraft. (Photos: REUTERS/Amit Dave, AFP/Roslan Rahman)
This audio is generated by an AI tool.
SINGAPORE: Long regarded as one of the world's fastest-growing aviation markets, India is proving a challenging bet for Singapore Airlines (SIA).
Air India Group posted a record US$2 billion loss in the last financial year, contributing to co-owner Singapore Airlines (SIA) reporting a net loss of S$76 million (US$58.9 million) in the first quarter of 2026. With the airline also reportedly seeking about US$1.5 billion in fresh equity, it could be years before SIA's investment bears fruit.
Here's a timeline of how a joint venture with an Indian conglomerate to launch a new airline ultimately resulted in SIA becoming a co-owner of Air India.
February 1995: First formal attempt
Tata and SIA first sought to establish a jointly owned full-service airline in India in the 1990s.
The proposal was formally submitted to India's foreign investment promotion board in February 1995. It was later cleared and referred for further government consideration, with a Wall Street Journal report in January 1997 valuing the proposed venture at about US$600 million.
However, the venture did not proceed. In 1997, the Indian government adopted a new civil aviation policy that barred foreign airlines from holding equity in Indian domestic carriers.
2000-2001: Air India bid
Tata and SIA next attempted to acquire an interest in an existing carrier rather than establishing a new airline, jointly bidding for a 40 per cent stake in Air India, which was then state-owned.
However, SIA would later withdraw from the Air India bid.
September 2012: India permits foreign airline to invest up to 49 per cent
India's Cabinet approved a proposal allowing foreign airlines to acquire up to a 49 per cent stake in Indian companies operating scheduled and non-scheduled air transport services, subject to government approval and requirements that substantial ownership and effective control remain vested in Indian nationals.
September 2013: Tata-SIA airline joint venture announced
SIA and Tata Sons announced plans to establish a full-service Indian airline based in New Delhi, with the former owning a 49 per cent share and the latter a 51 per cent share.
"We have always been a strong believer in the growth potential of India's aviation sector and are excited about the opportunity to partner Tata Sons in contributing to the future expansion of the market," said SIA CEO Goh Choon Phong then.
"Tata Sons is one of the most established and respected names in India. With the recent liberalisation, the time is right to jointly bring consumers a fresh new option for full-service air travel. We are confident the joint venture airline will help to stimulate market demand and provide economic benefits to India."
In its annual report for the 2013/14 fiscal year, SIA said it invested S$4.9 million (US$3.9 million) in the joint venture.
April 2014: Aviation ministry clearance
SIA informed the Singapore Exchange (SGX) that the Tata-SIA joint venture had received a No Objection Certificate from India’s aviation ministry, and would proceed to apply for an air operator’s permit.
January 2015: Vistara takes flight
Tata-SIA Airlines, more commonly known by its brand name Vistara, commenced operations on Jan 9, 2015.
By September that year, Tata and SIA had reportedly invested a combined 5 billion rupees (US$75 million), against an initial funding commitment of about 6 billion rupees.
SIA said in its 2014/2015 annual report it injected S$25.7 million into Vistara, retaining its 49 per cent stake in the airline.
In a letter to shareholders, then-SIA chairman Stephen Lee said he was “positive about its prospects, given the huge potential of the Indian market for sustained growth in both domestic and international travel”.
May 2017: SIA's cumulative investment in Vistara passes S$100 million
SIA had reportedly invested more than S$100 million (US$78.8 million) in Vistara, more than twice its initially planned investment.
April 2018-April 2019: Major expansion funding
Tata and SIA injected a combined 40.2 billion rupees into Vistara over the 12 months to April 2019, raising the airline's paid-up capital to 56.4 billion rupees.
April 2020-August 2021: COVID-19 pandemic support
During the first seven months of Vistara's 2020/21 fiscal year, Tata and SIA injected 18.3 billion rupees into the airline to help maintain liquidity during the collapse in air travel caused by the COVID-19 pandemic.
The funds were provided in proportion to their shareholdings.
There were two more publicly reported rounds of funding in May and August 2021, with SIA contributing a combined 5.95 billion rupees across the two rounds.
Based on capital injections disclosed in SIA's annual reports, the carrier had invested about S$900 million in Vistara by 2023.
January 2022: Tata takes over Air India without SIA
Tata Sons acquired 100 per cent of Air India from the Indian government.
October 2022: SIA confirms merger discussions
In an SGX announcement, SIA disclosed that it was in confidential discussions with Tata concerning Vistara and Air India, but no definitive terms had yet been agreed.
November 2022: Air India-Vistara merger agreement signed
SIA and Tata formally agreed to merge Vistara into Air India.
In exchange for about 25.1 per cent of the enlarged Air India, SIA agreed to contribute its existing 49 per cent stake in Vistara, as well as invest 20.585 billion rupees or about US$250 million in Air India.
SIA also agreed to provide up to another 50.2 billion rupees or US$615 million after the merger is completed, if required.
November 2024: Merger completed
Air India and Vistara legally merged on Nov 12, 2024. SIA’s 49 per cent share in Vistara ceased to exist, and SIA became the owner of about 25.1 per cent of Air India, which consequently became an associated company of SIA.
When the merger agreement was announced in 2022, SIA CEO Goh Choon Phong hailed the merger as an opportunity to “deepen our relationship with Tata and participate directly in an exciting new growth phase”.
Tata Sons chairman N Chandrasekaran also then called it “an important milestone in our journey to make Air India a truly world-class airline”.
March 2025: Further Air India capital injection
SIA made another capital injection of 10.807 billion rupees, or US$131.4 million. By the end of March, the total cost of SIA's investment in Air India stood at S$2.096 billion.
April-May 2025: India-Pakistan conflict
India and Pakistan engaged in armed conflict following a terror attack in Indian-administered Jammu and Kashmir, with New Delhi blaming Islamabad for supporting cross-border terrorism.
In response, Pakistan closed its airspace to all Indian carriers, forcing them to drastically alter their flight routes.
June 2025: Air India Flight 171
On Jun 12, 2025, an Air India flight bound for London crashed less than a minute after departing from Ahmedabad airport in Gujarat.
In the aftermath, Air India introduced a "safety pause" and carried out additional safety checks on its Boeing 787 fleet.
January 2026: Cooperation framework agreement signed
Both carriers said they planned to explore closer schedule coordination, codesharing, frequent-flyer benefits and cooperation in selected markets after penning a commercial cooperation framework agreement.
February 2026: US-Israel war on Iran
On Feb 27, the United States and Israel launched attacks on Iran, resulting in retaliatory action by Tehran and the effective closure of the Strait of Hormuz. The closure of the strait, one of the world’s busiest, stifled oil supplies and elevated jet fuel prices.
May 2026: Air India losses widen
Air India Group recorded a record loss of more than US$2 billion for its 2025-26 fiscal year.
SIA CEO Goh Choon Phong then said Air India faced multiple industry-wide challenges, including supply chain disruptions and the Middle East crisis, as well as unique challenges such as Pakistan’s closure of its airspace to all Indian carriers.
However, he said those headwinds were external factors, and SIA remained committed to supporting Air India’s transformation.
“We have never had any illusion that it is an easy path. Way back when we started the joint venture with our partner Tata Sons to set up Vistara, we knew at that point in time that it is a long game,” he added.
July 2026: Air India turnaround could take a decade
India's Tata Sons said that Air India's turnaround could take up to a decade.
Chairman N Chandrasekaran said in the company's annual report that the airline’s turnaround would take time due to persistent supply-chain disruptions in key components, the need to overhaul legacy systems, culture, fleet, and efforts to build a larger technical and airline workforce.
SIA also defended its Air India investment in response to questions by Securities Investors Association. The company said, ahead of its annual general meeting, that its stake "recognises India’s growth and aviation market potential".
"The Air India investment provides direct access to India’s domestic market and international flows via Indian hubs, complementing the Singapore hub and supporting growth opportunities that cannot be fully realised through a single-hub model," it noted in a bourse filing.
SIA added that it was the only non-Indian airline group with a direct stake in this "important and fast-growing market". It also noted that Air India was making "tangible progress" in its transformation efforts across areas like customer journey and experience, and cited how there had been "significant improvements" in its Net Promoter Score, a widely used customer satisfaction metric in the airline industry.
August 2026: Air India seeks US$1.5 billion
Air India reportedly sought US$1.5 billion in fresh equity from its owners Tata Sons and SIA, which would be one of Air India's largest publicly reported requests for shareholder funding since Tata took control of the former state-owned carrier in 2022.
In response to CNA's queries, SIA said that as a significant minority shareholder, it works with Tata to support Air India's transformation programme.
On the request, the carrier added that the board would "carefully consider" any requests for additional capital from Air India, taking into consideration its other capital requirements and Air India's business strategy.
