Singapore Airlines shares fall after Air India crash that killed over 260 people
Singapore Airlines (SIA) shares fell on 13 June, a day after a deadly crash involving an Air India flight that left at least 265 people dead.
SIA, which owns a 25.1 per cent stake in Air India, saw its stock drop by 13 cents to S$6.90 by 9.30am.
Air India Flight AI171, which was en route from Ahmedabad to London, crashed shortly after take-off on 12 June.
The aircraft went down outside the airport perimeter, killing all 241 passengers and crew on board.
The crash also resulted in fatalities on the ground when the aircraft struck a medical college hostel.
The Straits Times Index dropped 0.5 per cent, reflecting broader regional concerns.
Asian markets fell following Israeli airstrikes in Iran, which have raised fears of escalating conflict in the Middle East.
This has contributed to a surge in oil prices, impacting investor sentiment across sectors.
SIA's investment and partnership with Air India
SIA acquired its stake in Air India following the carrier's merger with Vistara in November 2024.
Vistara was previously a joint venture between Tata Sons and SIA.
Through its shareholding, SIA is positioned to capitalise on the growth of India's aviation sector.
SIA and Air India have an extensive codeshare agreement.
In 2024, they expanded the partnership to include 11 Indian cities and 40 international destinations.
The two airlines also announced an increase in weekly codeshare flights to 56, including services between Singapore and Indian cities such as Bengaluru and Chennai.
SIA issued a statement on 12 June offering full support to Air India
The airline said: 'Singapore Airlines extends our deepest condolences to all passengers, crew members and their families affected by Air India Flight AI171.'
The crash marks the first total loss of a Boeing 787 Dreamliner, an aircraft known for its strong safety record.
The 787 has been a major product for Boeing, with 1,148 jets in service globally.
Boeing shares fell 4.8 per cent on 12 June in New York, the largest drop among S&P 500 stocks.
In May, SIA posted a record net profit of US$2.8 billion for the financial year ending 31 March.
This included a one-off non-cash accounting gain of US$1.1 billion from the Air India-Vistara merger.
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