Air India's worst crash in a decade also hits Singapore Airlines; can the aviation giant recover in the Indian market?

Time of India

15 hours ago

Singapore Airlines' stock fell sharply following an
Air India
aircraft crash in the Indian state of Gujarat on June 12, 2025. The airline holds a 25.1% stake in Air India through its partnership with India's Tata Group. The accident has cast a shadow over the ambitious turnaround plans of India's national carrier, now under Tata's management, and
Singapore Airlines
' major stake in it.
On Friday, a day after the crash of the Indian carrier's plane, shares of SIA closed at SGD 6.94, down 1.28 percent from its previous close.
This also came after Singapore Airlines announced an initiative offering over 100 Air India pilots the chance to join its low-cost subsidiary, Scoot.
Air India Flight 171
, a Boeing 787-8 Dreamliner, crashed shortly after takeoff from Gujarat's Ahmedabad on its way to London Gatwick Airport. The aircraft veered off course and hit a medical college hostel during lunch hour, killing 241 people on board and at least 33 more on the ground. More than 60 others were injured while one passenger, a Briton, miraculously survived.
The accident is now India's deadliest aviation disaster in more than a decade and the first fatal crash involving a Boeing 787 since the aircraft's debut in 2011.
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The sole survivor of the crash, British-Indian passenger Vishwash Kumar Ramesh, reportedly escaped through a broken door and is currently in stable condition.
Following the crash, Singapore Airlines issued a statement offering condolences to the victims.
The Straits Times on June 12 quoted SIA stating that it is 'offering full support and all necessary assistance to Air India during this time'. "Singapore Airlines extends our deepest condolences to all passengers, crew members and their families affected by Air India Flight AI171. Our thoughts and prayers are with everyone impacted during this difficult time," the news portal published referencing SIA.
Its financial exposure and long-term involvement with Air India can come under close investor scrutiny. The company's shares immediately dropped in value.
Tata Group acquired Air India from the Indian government in 2022. Founded in 1932 by entrepreneur JRD Tata and nationalised by the Indian government in 1953, it has been working to revive the airline through fleet upgrades, a refreshed brand identity, and a merger with Vistara, another Tata-backed carrier.
SIA's Vistara stake converted to 20% in the new Air India group, with SIA purchasing an additional 5.1% for S$360 million and committing S$880 million to support the airline.
Led by former SIA executive Campbell Wilson since 2022, the revamped Air India now operates a fleet of 198 planes, has orders for 570 more, and controls about 30% of India's domestic market, positioning it as a key player in a fast-growing aviation sector.
Tata Group chairman N. Chandrasekaran called the incident 'one of the darkest days in our history' and promised full cooperation with the investigation. The group held an emergency board meeting on June 13 to address the unfolding crisis and also announced a compensation of 10 million Indian rupees (US $116,200) to families of those killed in the air crash.
Investigators from India's Aircraft Accident Investigation Bureau are being assisted by teams from the US National Transportation Safety Board (NTSB), Federal Aviation Administration (FAA), Boeing, and GE Aerospace. The flight data recorder has been recovered.
Initial reports suggest multiple technical issues, including possible engine failure and incorrect flap configuration. India's aviation regulator has ordered urgent checks across Air India's Boeing 787 fleet to verify safety compliance.
The crash has also renewed pressure on Boeing, whose aircraft have recently faced scrutiny over safety and manufacturing concerns. GE Aerospace, which manufactures the Dreamliner's engines, also assists with the probe.