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The push for tougher terms reflects growing pressure on Singapore Airlines to justify increasing its investment in Air India, which posted a US$2.33 billion loss in the financial year ended March, weighing directly on the Singaporean carrier’s profits.
Singapore Airlines has lost money in several past overseas investments, and Tata said in July that Air India’s turnaround could take up to a decade. The Indian carrier has appointed former Ethiopian Airlines head Tewolde Gebremariam as its new CEO to replace former Singapore Airlines executive Campbell Wilson.
Singapore Airlines has limited formal influence over Air India. Under a 2022 merger agreement that folded its 49 per cent-owned Indian carrier Vistara into Air India, it received a single board seat, taken up by its CEO Goh Choon Phong.
Its stake of more than 25 per cent does, however, give it the power under Indian company law to block special resolutions covering major corporate matters, including mergers, share buybacks and voluntary winding up.
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