Singapore Airlines is likely to seek greater influence over management and stronger governance rights before approving a capital injection into Air India Ltd, as reported by Reuters.
Backed by state investor Temasek, Singapore Airlines has proposed conditions, which would be negotiated with Air India’s majority owner Tata Sons, could include greater board voting power and requirements for the Indian carrier to narrow its losses, the report said citing the people familiar with the matter.
The conditions would be negotiated with Air India’s majority owner Tata Sons Pvt. Ltd., and is likely to include greater board voting power and requirements for the Indian carrier to narrow its losses, it said.
Temasek, Singapore Airlines’ majority shareholder, would neither provide the capital itself nor intervene in the carrier’s decisions concerning Air India.
As per the report, under the proposed conditions, which would be negotiated with Air India’s majority owner Tata Sons Pvt. Ltd., is likely to include greater board voting power and requirements for the Indian carrier to narrow its losses.
Temasek, Singapore Airlines’ majority shareholder, would neither provide the capital itself nor intervene in the carrier’s decisions concerning Air India, they said.
Earlier, Singapore government said it will not interfere in any decision that Singapore Airlines Ltd. makes in Air India Ltd
The Singapore government said it will not interfere in any decision that Singapore Airlines Ltd. makes in Air India Ltd. Notably, Air India is said to be seeking financial aid from its shareholders.
The airlines is also to have a fresh capital infusion into Air India worth over Rs 10,000 crore, as one of its largest commitments to the airline since the Rs 18,000-crore acquisition in 2021, reports said.
Singapore’s Senior Minister K Shanmugam said the Singapore Air has the responsibility to “assess its investments in Air India in relation to the resources it has for the long-term growth and profitability of the company.”
Singapore Airlines To Seek Greater Influence Before Approving Capital Injection Into Air India: Report
