Timeline: How SIA's India bet led to a 25.1% stake in Air India

Singapore Airlines (SIA) has finally secured a 25.1% stake in Air India, marking a significant milestone after more than three decades of navigating India's dynamic aviation market. This strategic move, a partnership with the Tata Group, culminated in the launch of the Vistara airline and has now positioned SIA as a key stakeholder in the national carrier.

India's aviation sector is recognized as one of the world's fastest-growing. However, it presents considerable challenges, as evidenced by Air India Group's record $2 billion loss in the last financial year. This financial performance contributed to SIA reporting a net loss of S$76 million (US$58.9 million) in the first quarter of 2026. The airline is reportedly seeking approximately $1.5 billion in fresh equity, suggesting that SIA's investment may take years to yield substantial returns.

The journey to this partnership began in February 1995 when Tata and SIA first proposed a jointly owned full-service airline. Although cleared by India's foreign investment promotion board, the venture did not materialize due to a shift in the Indian government's aviation policy in 1997, which barred foreign airlines from holding equity in domestic carriers.

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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.

A subsequent attempt in 2000-2001 saw Tata and SIA jointly bid for a 40% stake in the state-owned Air India, but SIA eventually withdrew. The landscape shifted in September 2012 when India permitted foreign airlines to invest up to 49% in Indian companies, subject to government approval and maintaining substantial Indian ownership and control.

This liberalization paved the way for the September 2013 announcement of the Tata-SIA airline joint venture. At the time, SIA CEO Goh Choon Phong expressed optimism, stating, "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." He added, "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."

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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.