Air India is on a challenging journey, and it’s going to take some time to transform. Goh Choon Phong, the CEO of Singapore Airlines, emphasizes that there are no quick fixes for the Indian airline. It is facing several hurdles, such as the ongoing closure of Pakistan’s airspace and issues with the value of the rupee.
Recently, Singapore Airlines reported a significant drop in profits—down 57.4% to SGD 1.184 billion for the fiscal year ending March 2026. The decline is partly due to the absence of a one-time profit from the Vistara merger last year and ongoing losses from Air India. In fact, Air India’s losses exceeded SGD 3.56 billion (over ₹26,700 crore) during the same period.
Despite these challenges, Goh believes that investing in Air India allows Singapore Airlines to tap into India’s rapidly growing aviation market. He notes that without the domestic market, expanding into secondary hubs is essential for long-term growth.
Air India has faced disruptions beyond just airspace issues. Recent events include supply chain problems and conflicts in the Middle East. The closure of Pakistani airspace has forced Air India to take longer routes, which increases operational costs. Moreover, a tragic crash in 2025 of an Air India flight that claimed 260 lives resulted in reduced capacity for the airline.
Goh pointed out that many of Air India’s struggles are external. Yet, significant strides are being made in its long-term transformation. Since 2022, Air India has recruited over 14,000 new employees. Remarkably, the average age of staff has decreased from 54 to 36.
This transformation follows Tata Group’s acquisition of Air India from the Indian government in January 2022, with Singapore Airlines later acquiring a 25.1% stake. The collaboration aims to revitalize Air India, ensuring it can compete effectively in both domestic and international markets.
As Goh aptly summarized, the journey is a “long game,” and while challenges persist, progress is evident.
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AIR INDIA, GOH CHOON PHONG, SINGAPORE AIRLINES CEO, SINGAPORE AIRLINES, OH CHOON PHONG SAID WITH THE PAKISTAN AIRSPACE CLOSURE, THERE ARE FLIGHT ROUTE DISRUPTIONS
