SINGAPORE, Sept 10 — Singapore Airlines is expected to seek greater management influence and stronger governance safeguards before agreeing to inject more capital into Air India, according to people familiar with the matter.

CNA reported that the proposed conditions, which would be negotiated with Air India’s majority owner Tata Sons, could include greater voting power on the board and requirements for the Indian carrier to reduce its losses, citing two people familiar with the matter.

Singapore Airlines’ majority shareholder Temasek would not provide the capital itself or intervene in decisions concerning Air India, the sources said.

The discussions follow a report last month that Air India was seeking about US$1.5 billion (RM6.1 billion) in fresh equity from its owners.

Two other people said Tata had approved a US$1.1 billion injection, representing its share based on its stake, while Singapore Airlines owns the remaining 25.1 per cent.

All four people declined to be identified because the information has not been made public.

In a statement, Singapore Airlines said its board would carefully assess any request for additional capital, taking into consideration Air India’s business strategy, the group’s operating cash flow and other capital requirements.

Temasek declined to comment on “speculation with respect to the points on Temasek”, while Tata and Air India did not respond to requests for comment.

The push for tougher conditions comes as Singapore Airlines faces growing pressure to justify further investment in Air India, which recorded a US$2.33 billion loss in the financial year ended March, directly affecting the Singaporean carrier’s profits.

Singapore Airlines has recorded losses on several overseas investments in the past, while Tata said in July that Air India’s turnaround could take up to a decade.

Air India has appointed former Ethiopian Airlines chief Tewolde Gebremariam as its new chief executive officer, replacing former Singapore Airlines executive Campbell Wilson.

Singapore Airlines has limited formal influence over Air India, having received one board seat under a 2022 merger agreement that brought its 49 per cent-owned Indian carrier Vistara into Air India, with Singapore Airlines chief executive Goh Choon Phong occupying the seat.

However, its stake of more than 25 per cent gives Singapore Airlines the ability under Indian company law to block special resolutions on major corporate matters, including mergers, share buybacks and voluntary winding-up.

The funding request has also prompted an opposition lawmaker in Singapore to call for Temasek funds not to be used to support Air India.

Singapore Airlines said on Tuesday that its investments in India had been and would continue to be funded through internal resources, adding that it had S$10.48 billion in cash reserves and S$3.24 billion in undrawn credit lines as at the end of June.

Temasek publicly backed Singapore Airlines’ investment in Air India last month, saying it took a long-term view of the decision.

Singapore’s Senior Minister K Shanmugam said on Saturday that any decision to invest in Air India was for Singapore Airlines to make, while Temasek expected the carrier to make investment decisions responsibly.

One of the people said Singapore Airlines, rather than Temasek, would be responsible for establishing safeguards, governance requirements and performance targets for any additional investment in Air India.

The airline’s strategy is to benefit from India’s long-term aviation growth while managing the risks associated with turning around a major carrier, the person said, adding that Temasek had supported similar investments in Indian companies in the past, including hospital operator Manipal Health.

Temasek has significant investments in India across sectors including healthcare, financial services, consumer businesses and technology, and has identified the country as a key growth market for its portfolio.