NEW DELHI: Singapore Airlines chief executive Goh Choon Phong said Air India’s inability to use Pakistani airspace for more than a year put the airline at a disadvantage against foreign carriers that continue to use the route.
Goh’s comments are arguably the first on the issue, which has plagued Indian carriers since April last year. He noted that Air India, in which Singapore Airlines owns 25.1%, has the same issues to resolve as other airlines – supply chain delays, aircraft deliveries and the West Asia conflict.
“But on top of that, there are other issues they have to contend with. The closure of Pakistani airspace affects only Indian-based operations, not anyone else,” Goh said during a post-results call with investors on Friday.
“Singapore Airlines is right in pointing out Pakistani airspace closure as a specific problem. It’s unique to Air India and not to other foreign carriers. It continues to be a substantial operating hit,” said Gagan Dixit, senior vice president - aviation, chemicals, oil & gas at Elara Capital.
Singapore Airlines said its net profit more than halved in FY26, primarily on account of its share of losses in the Tata Group-owned Indian carrier. The hit for Singapore Airlines from its stake in Air India was $742.4 million (Singapore $945.2 million), calculated as per Thursday’s currency conversion rates.
The closure of Pakistani airspace means longer flying hours for Indian airlines to Europe and North America. This has impacted their operational costs. In October, Air India chief Campbell Wilson said losses due to the continued closure of Pakistani airspace for a full year were about ₹4,000 crore.
According to the annual report of Singapore Airlines filed on Thursday, Air India is expected to report a loss of almost $3 billion (S$3.76 billion), or roughly ₹28,400 crore, in FY26, almost three times that of FY25.
Air crash
The Singapore-based carrier also cited Air India’s June 2025 air crash, which resulted in tighter regulatory scrutiny and additional safety inspections. Alongside, the depreciation of the Indian rupee against the US dollar, leading to increased maintenance and leasing costs paid in the US currency, also impacted Air India’s performance.
“The June crash and regulatory scrutiny impacted Air India’s agility,” said Elara Capital’s Dixit. “It is interesting that Singapore Airlines considered the rupee weakening to the dollar too as a key cause.”
There were two other global issues that the Singapore-based carrier mentioned in its investor presentation: supply chain disruptions causing delays in fleet renewal and cabin retrofitting and the West Asia war, which increased fuel costs, disrupted flight routes and affected markets.
Goh acknowledged them “certainly (as) headwinds” and categorized them as “external factors.”
Air India may not have the bandwidth to increase airfares on international routes, which are up 40% year-on-year, and on domestic routes, which are up 15%, Dixit said. Singapore Airlines should have pushed for fleet replacement by Air India to bring in operational efficiency.
“But the airline also needs a new fleet, faster deliveries from Boeing and Airbus. A fuel-efficient fleet would bring down maintenance and operational costs by 15-20%,” Dixit said.
Operational challenges
The past 12 months have been difficult for the Tata Group-owned airline, which continues to face mounting losses amid multiple operational challenges. As part of its cost-cutting measures, the airline scrapped some international routes and deferred increments and bonuses for staff.
The airline is in the middle of a leadership transition, with chief executive officer Wilson having resigned in March and serving his notice period. Air India is yet to announce a successor.
Singapore Airlines maintained that Air India was a part of its global multi-hub strategy.
“We remain committed to supporting Air India’s transformation,” Goh said.
He said SIA has been operating in India for a long time and knows how difficult it is.
“But this is a market that holds tremendous potential,” he said. “Now the potential (of India) is even more obvious.”
Goh did not specify timelines related to Air India’s turnaround or fresh capital infusion plans by Singapore Airlines.
“One has to look if there are tangible progress or improvements made by Air India. And you can be rest assured that as shareholders we will monitor that very closely. At the same time, we will also to the extent support them in the transformation process,” he said.
On Wilson’s succession, a call will be taken by Air India’s board of directors, said Goh, who is on the seven-member board headed by N Chandrasekaran.
