Singapore Air backs Tewolde's Air India reset, but losses keep investors on edge

NEW DELHI: Singapore Airlines has backed Air India chief executive Tewolde Gebremariam’s push to cut costs, improve operational efficiency and unlock new revenue streams, even as mounting losses and questions over further funding keep investor scrutiny firmly on the investment.

The turnaround, however, will take time to show results, Singapore Airlines (SIA) chief executive Goh Choon Phong said on Thursday, offering a public endorsement of the new chief’s strategy while tempering expectations of an early recovery.

At its analyst and media briefing on Thursday, SIA, which holds a 25.1% stake in Air India, outlined a series of initiatives introduced by Tewolde, the former Ethiopian Airlines chief who took charge of Air India in October after Campbell Wilson’s departure the previous month.

Tewolde is rebalancing Air India’s international network, shifting some operations from Delhi to Mumbai as its key hub for westward flights to reduce the additional fuel burden from Pakistan’s airspace closure. He is also seeking to increase overseas ticket sales by restoring capacity in key North American and European markets, tap India’s cargo market by converting passenger aircraft into freighters, and rein in costs across Air India and Air India Express by merging key teams and reducing duplication.

Goh outlined the commercial rationale behind the initiatives in an investor presentation, beginning with the shift in international operations to Mumbai.

Shifting some Europe- and US-bound services from Delhi to Mumbai would reduce the additional distance flown to avoid Pakistani airspace, Goh said, adding that, “The relative impact of the additional distance to be covered from Mumbai is significantly lower than ex-Delhi. Therefore, by shifting, (it) would actually reduce, obviously, the distance covered and therefore fuel burned when they serve Europe in particular.”

The cost of rerouting flights had previously been pegged at ₹4,000 crore a year.

Goh also backed Tewolde’s efforts to increase international ticket sales, pointing to the opportunity to capture demand from overseas markets rather than relying predominantly on passengers originating in India. “For a large part of Air India's sales, it is actually coming from within India. (But) you know, for international travel, a lot of demand (is) also coming from outside India. So this is a clear opportunity that he (Tewolde) has identified and will be pursuing.”

Cargo is another growth opportunity that Air India has yet to fully exploit, while Tewolde has also moved to tighten cost management across the two airlines. “I would say that he has been very proactive and prompt in coming out with all these initiatives,” Goh said.

The endorsement, however, came with a qualification. Asked whether Air India’s performance in the first half had restored confidence in the investment, Goh said Tewolde had only joined in October and that the impact of his measures was yet to be felt. “A lot of the measures that he is implementing obviously will take time to filter through,” he said.

The cautious assessment comes as SIA faces increasingly pointed questions from analysts, shareholders, and Singapore's lawmakers about its exposure to Air India.

At successive results briefings over the past 12 months, investors have sought clarity on the scale of Air India’s losses, the prospect of further capital injections and how long SIA is prepared to wait for a turnaround. At its July annual general meeting, shareholders also pressed the company on the possibility of additional funding and the circumstances under which it might reconsider the investment.

The Indian airline remained a prominent concern at Thursday’s briefing, with at least one in four questions fielded by SIA management during the investor, analyst and media session centred on Air India and its turnaround plans.

The financial numbers help explain the persistent scrutiny. SIA’s share of losses from Air India stood at S$361.7 million in the six months ended September, compared with S$429.5 million a year earlier, a decline of 16%. But the apparent moderation offers little evidence of an underlying financial recovery.

Goh said the lower share of losses was “primarily attributable to the reversal of some provisions” made in previous years. Asked whether Air India’s losses had consequently declined by around 16%, he was explicit: “The answer is no, because it's attributable to the reversal of the provisions.” SIA declined to disclose the amount reversed.

Based on SIA’s 25.1% stake, Air India’s losses would have amounted to roughly S$1.44 billion ($1.13 billion) in the six months, according to Mint calculations. The figure may differ from Air India’s own reported numbers because of accounting adjustments.

Privately held Air India does not publish quarterly results like listed carriers; its financial statements are available through statutory filings with the ministry of corporate affairs.

Air India remains under considerable financial pressure. It reported a consolidated net loss of ₹22,238 crore in fiscal year 2026 (FY26), while revenue from operations declined by more than 9% to around ₹71,000 crore.

The airline is also grappling with higher operating costs, currency depreciation, longer flight routes because of Pakistani airspace restrictions and the costly task of retrofitting its fleet, a process expected to be completed in 2028.

Abhishek Law has spent 18 years in journalism, which in news industry terms means he has survived several newsroom restructurings, countless “urgent” press releases, and more cups of tea than he can reasonably count. Based in New Delhi, he covers aviation for Mint, a sector where aircraft, oil prices, geopolitics and airline CEOs regularly conspire to make his life interesting.<br><br>Most of his time gets occupied by translating airline jargon like ASKs, yields, load factors and fleet strategies into language that doesn’t require a pilot’s licence. His motto is simple: if readers need a glossary, he hasn’t done his job properly.<br><br>On most days, the quadragenarian is tracking airline strategies, policy changes and the occasional mid-air disruption that suddenly become a stock market story. When planes are behaving themselves (which is not very often nowadays), he strays into other corporate beats like steel, trying to figure out what’s really happening.<br><br>He loves to talk, especially ask—that one more question which people are uncomfortable with, and saving contacts in his phone as a "Source who may or may not pick up calls”. <br><br>But, on a serious note, the goal remains simple: cut through jargon, find that additional detail, and turn complicated business stories into something one can actually enjoy reading.

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