It would be one of Air India's largest publicly reported requests for shareholder funding since Tata took control of the former state-owned carrier in 2022. It highlights the challenges facing the airline as it undergoes a multi-billion-dollar revamp, including the refurbishment of its existing fleet.
The carrier and its budget unit Air India Express posted combined losses of US$2.33 billion in the fiscal year ended March, more than double the prior year's losses. The losses have also weighed on SIA's profits.
"Air India wants the funds immediately, though the infusion is likely to happen in tranches. SIA would need to contribute its share of the proposed infusion for the investment to go through," one of the sources said. CNA
Having been snared and trapped inside the net, SIA has no where to run but be skinned over and over again for as long as Air India wants it. Air India is as good as saying, we lose money, SIA pays. This is standard Indian playbook on show. But no worry, Singapore has many good Indian contacts and can work out a deal through the back door, just like the previous victims. Instead of US$1.5 billion, the Indians would be kind to give a discount and be very happy with US$1.3 billion. And everyone will be happy and smiling, patting themselves on the back that they had a good deal. Be sure that this will not be the last. Robert Kuok had similar experiences, but not with India. When the leeches attached themselves to a hapless victim, there is no mercy.
Tata Sons would volunteer to pay their share quickly in a show of good faith. An excellent model partner to follow. Just do what Tata Sons does, cannot go wrong. Is there any other clever choices available? Big question is whether Tata did pay anything at all. The whole scheme smell from a mile away.
How many big corporations and funds have been snared by the Indians and too ashamed to admit the truth? Enough said.
What would LKY do in such a situation? Remember LKY threatened to close down SIA when he found the situation too hot to handle? Air India is likely waiting for SIA to cut losses and sell its shares for a song. If not, SIA will continue to be bled forever in this investment made in heaven, from a highly profitable and well managed airline but with a big hole in Air India. Poor shareholders seeing their dividends slipping through their fingers. How can this happen? Investing in SIA is a good choice, to make money, not to lose money! In India's case, they have found another ATM bloated with money.
What do you think? Without LKY around, how is SIA going to get out from this rut? Is SIA the only one in such a rut? Do you think Tata Sons will be paying a single cent for this? On paper maybe.
7 comments:
India is eyeing many fat cats like DBS, GIC, Temasek and other Singapore ATMs, all overflowing with money and no idea where to throw. India will come up with many clever schemes to have them part with their OPM. India is so attractive and promising over the long run. And they have many good Indian contacts to link up with the Indian govt.
This is basic doing business 101 in India, depending on contacts, not contracts or rule of law. There is no law in India, as the laws are ever changing and can be cooked up against investors. Trust the contacts.
The assumption, the Indian contacts will be working not for Indian interests but for non Indian interests. Ask, when two Indian nationals negotiating a deal, whose interests would they be thinking of? India or foreign investors?
Who do you think will be duped?
Who is is the executive director and chief executive officer (CEO) of Temasek Holdings ???
Luckily UOB and OCBC are in safe hands and not easily duped.
No worry, SIA has a lot of money to pay India. The only victims are the shareholders' dividend. And look in the long term, there is an Indian rainbow waiting for SIA. Who knows, the snake may swallow the elephant, if the elephant is willing to be swallowed.
Without LKY around to pull the brakes, how long as SIA last?
Very simple for Sia just pull the plug...why date not?... probably they had their balls squeezed already so no balla...
When they went after Robert Kuok, first time 30%. Next year, another 30%. Robert asked, when will it end? They just smiled. They went after Robert's sugar business, then they went after his flour and oil businesses. Thankfully, Robert ran away to Hong Kong, China....and survives till today. If not he will be skinned alive.
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