Air India stakeholder Singapore Airlines' shares dip after deadly Ahmedabad crash
SINGAPORE, June 13 — Singapore Airlines (SIA) shares slid this morning after a deadly crash involving Air India Flight AI171, raising fresh concerns for investors linked to the Indian carrier.
SIA holds a 25.1 per cent stake in Air India.
According to The Straits Times, the Singapore national carrier's stock was down 13 cents, or 1.8 per cent, at S$6.90 as at 9.30am, following news that at least 265 people were killed when the London-bound flight crashed shortly after take-off from Ahmedabad yesterday.
The Straits Times Index also dropped 0.5 per cent amid wider regional declines triggered by renewed Middle East tensions and rising oil prices.
SIA's exposure to Air India stems from a 2024 merger between the Indian flag carrier and Vistara, formerly a joint venture between Tata Sons and SIA.
While the deal gave SIA access to India's booming aviation sector and contributed a one-off S$1.1 billion gain to its record S$2.8 billion full-year net profit, the tragic crash has cast a shadow over its investment.
Boeing, too, took a hit. The doomed AI171 flight involved a 787 Dreamliner — the first total loss of the jet type since its introduction over a decade ago. Shares of Boeing tumbled 4.8 per cent in New York, the biggest drop in the S&P 500 on Wednesday.
While the cause of the crash remains under investigation, analysts say there is no immediate evidence pointing to a manufacturing flaw.
'It seems this was not likely a manufacturing or design issue given the age and usage history of the aircraft,' Citi's Jason Gursky wrote in a note.
SIA said it is providing 'full support and all necessary assistance' to Air India and extended condolences to the victims and their families.
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