≡-Singapore Airlines Staggers As Shares Sink Over Two Percent Following Shocking Air India Plane Inferno In India: New Report – Viral of Today

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Home » AIRLINE NEWS » Singapore Airlines Staggers As Shares Sink Over Two Percent Following Shocking Air India Plane Inferno In India: New Report Friday, June 13, 2025Singapore Airlines staggered on the Singapore Exchange as its shares sank over two percent on Friday, directly linked to a catastrophic Air India plane inferno in India that killed more than two hundred forty people. The selloff was triggered by investor fears over SIA’s 25.1 percent stake in Air India, following the tragic crash of a Dreamliner into a residential building in Ahmedabad, Gujarat, intensifying market concerns over reputational risk, financial exposure, and fallout from one of the deadliest aviation disasters in recent Indian history.Singapore Airlines (SIA) experienced a notable drop in its share price on Friday, June 13, as investors reacted strongly to a tragic crash involving an Air India flight bound for London. The incident has sent shockwaves through the aviation community and triggered a wave of market uncertainty, particularly for stakeholders linked to Air India, where SIA holds a substantial minority stake.The market opened with an immediate downturn in SIA shares. At 9 a.m., as trading began on the Singapore Exchange, the airline’s stock fell to S\$6.88. That marked a steep 2.1% decline from the previous day’s close of S\$7.03, wiping S\$0.15 off its value in the opening minutes. This was the lowest price point the stock had hit since May 16, 2025, based on publicly available trading data. Roughly 723,200 shares changed hands in the early part of the session, as investors scrambled to reassess their positions.The downward trend continued through the morning, although the share price managed a slight recovery by midday. At the lunch break, SIA stock rose modestly to S\$6.91, narrowing the loss to 1.7% or S\$0.12. Even with the mild rebound, trading volumes remained high, with around 6.5 million shares transacted before the afternoon session. By the close of Friday’s trading, SIA shares had settled at S\$6.94, still down 1.3% or S\$0.09, with total volume hitting 12.6 million shares. The decline reflected growing market anxiety, not just over the crash itself, but over its potential ripple effects on brand reputation, shareholder value, and the future of one of Asia’s key aviation partnerships.The catalyst for this financial jolt came on Thursday when an Air India-operated Boeing 787-8 Dreamliner, flying from Ahmedabad in India to London’s Gatwick Airport, crashed into a residential building affiliated with a medical college in Ahmedabad, Gujarat. Initial reports confirmed that more than 240 people were killed in the incident, making it one of the deadliest aviation disasters in India in recent years.Authorities in India launched an immediate investigation into the crash, while recovery operations continued at the scene. Eyewitness accounts and flight tracking data indicated that the aircraft lost altitude abruptly shortly after takeoff. The airline had not reported any technical issues prior to departure, and experts now await the findings from the aircraft’s black box to determine the cause of the accident. The Indian Directorate General of Civil Aviation (DGCA) has already begun coordinating with Boeing and international investigators to analyze the flight’s final moments.Singapore Airlines’ exposure to the fallout stems from its strategic stake in Air India. In November 2024, SIA finalized a merger between its full-service carrier Vistara and Air India. The move followed approval from Indian regulators and was part of a broader consolidation effort spearheaded by Air India’s owner to streamline its aviation assets under one umbrella. As part of the agreement, SIA acquired a 25.1% stake in the merged entity and committed to a long-term investment strategy in India’s fast-growing aviation market.The merger, touted at the time as a significant milestone in the regional airline industry, positioned SIA as a key player in the Indian aviation sector without direct day-to-day operational control. The joint venture allowed SIA to expand its network and benefit from the scale of India’s flag carrier while retaining brand separation for its Singapore-based operations.In terms of performance, Air India had shown promising signs before the accident. According to recent financial reports, the carrier posted record revenues of 610 billion Indian rupees—or roughly S\$9.1 billion—for the 2025 financial year. The company reported a profit in the second half of the year, excluding one-time charges, suggesting that the restructuring and modernization efforts had begun to pay off. Operational upgrades, expanded routes, and improved customer service had helped restore some of Air India’s tarnished legacy following years of underperformance and debt.However, the crash has cast a dark shadow over those gains. For Singapore Airlines, the tragedy presents both a reputational and financial risk. Although SIA has no direct role in Air India’s operations, its financial exposure could lead to negative sentiment among investors, particularly if regulatory action or public backlash escalates in the weeks ahead. Market analysts noted that even minority stakeholders can feel the heat when major accidents occur, especially in industries as sensitive as commercial aviation.The broader implications could also affect regional travel demand and confidence in legacy carriers operating in India. Safety concerns may push travelers toward other airlines, or compel authorities to introduce stricter oversight, adding further operational pressures. Aviation experts warned that while the full financial impact may take time to materialize, the initial market reaction already reflects the high level of investor concern.Singapore Airlines, known globally for its strong safety record and premium service, has not issued a detailed statement about the crash beyond offering condolences. However, the company is expected to monitor developments closely and may reassess its exposure depending on the findings of the crash investigation and any resulting fallout.Singapore Airlines shares sank over two percent after a deadly Air India plane inferno in India killed more than two hundred forty people, sparking investor fears due to SIA’s significant stake in the carrier. The tragedy raised immediate concerns about reputational and financial exposure.As rescue and recovery operations continue in Ahmedabad, both the Indian and global aviation sectors face renewed scrutiny over aircraft maintenance, safety protocols, and crisis management. For Singapore Airlines, this tragic moment underscores the complex risks that come with international joint ventures—even when operational control rests elsewhere.Tags: Ahmedabad crash, Air India crash, Air India fatalities, Airline News, airline stock drop, Boeing 787 Dreamliner, India plane crash, SIA share price, Singapore Airlines, Tourism news, Travel News

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