Global Markets
Home›Global Markets›Trade & Tariffs›Singapore lawmaker urges Temasek not to fund Air India…
Singapore lawmaker urges Temasek not to fund Air India bailout
The opposition Workers’ Party MP Kenneth Tiong argued Singapore Airlines should not seek capital support for Air India using Temasek funds.
A Singapore opposition lawmaker urged that state investor Temasek not be used to help fund Air India after the carrier sought US$1.5 billion from its owners, Tata Sons and Singapore Airlines, which Temasek majority-owns, according to SCMP Economy.
Kenneth Tiong, a member of parliament for the Workers’ Party, said Singapore Airlines owns about 25 percent of Air India and that Temasek’s control of Singapore Airlines means the request is not only a matter for private shareholders, adding that he would not support Temasek funds being used to prop up Air India via Singapore Airlines.
Tiong also said that whichever party writes the cheque would have a significant impact on Temasek and later filed a parliamentary question for an oral answer on September 8 about whether losses and the carrying amount in Singapore Airlines’ foreign associates have been assessed against the carrier’s capacity to provide essential transport services, the outlet reported.
Singapore’s Ministry of Transport, Temasek, Air India, Tata Sons and Tiong did not respond to emails seeking comment. Singapore Airlines said its board would carefully consider any requests for additional capital for Air India, weighing the group’s other capital needs and the Indian airline’s business strategy.