Singapore Airlines’ string of loss-making airline stakes raises doubts over expansion strategy

Singapore Airlines’ 25.1% ownership of Air India is under pressure after the Indian carrier requested an additional US$1.5 billion in support following a record loss, prompting scrutiny of SIA’s broader investment history. Past stakes have been largely unprofitable: a £600 million purchase of 49% of Virgin Atlantic in 1999 was sold for £224 million in 2012; a 25% share in Air New Zealand was diluted and sold for US$336 million in 2004; Tiger Airways’ Australian arm incurred years of losses before being sold to Virgin Australia for a nominal sum; and the airline’s later investments in Virgin Australia and the NokScoot joint venture were written off during the pandemic.

Analysts such as Jason Sum and Ada Lim describe the pattern as “underwhelming,” citing minority positions that restrict operational control and exposure to volatile, capital-intensive markets. SIA maintains that its current Air India stake aligns with a multi-hub strategy, offering valuable slots and traffic rights, and stresses that each deal is assessed against strategic, risk and capital criteria. Observers suggest SIA could learn from Qatar Airways, which has taken minority stakes in strong hub carriers and achieved better returns. Potential growth avenues for SIA include expanding Scoot’s feeder network, fleet renewal and leveraging its engineering arm.