IndiGo expresses interest in buying Air India, govt yet to decide quantum of stakes being sold

IndiGo's interest was confirmed by civil aviation secretary RN Choubey on Thursday.

New Delhi, June 29:  After the cabinet’s decision to give an in-principle approval for the disinvestment of Air India, multiple parties have shown interest in the national air carrier. Interestingly, among those looking at a possible purchase, rival carrier IndiGo’s ‘expression of interest’ in the purchase, stands out.

IndiGo’s interest was confirmed by civil aviation secretary RN Choubey on Thursday. The airline will, however, have to make a bid to formally enter the process for the purchase of Air India. In a brief to the media, Choubey said, “Received unsolicited expression of interest from IndiGo on Air India. The interest from Indigo was received today. Only when formal bid asked they can apply.”

Meanwhile, the government is yet to decide the quantum of stakes in Air India that are up for grabs. According to reports, a 100 per cent sale is also not out of consideration. The decision on the number of stakes that will be sold, will, however, be made soon.

Commenting on the same, Finance Minister Arun Jaitley had said that the final modalities, including the quantum of stake sale, would be decided by a group of ministers. He also said, “The Cabinet has accepted the recommendations of the NITI Aayog and has given an in-principle nod for disinvestment of Air India and its five subsidiaries.”

The Tata group is another investor that has expressed potential interest. Reports express that the group, that initially owned Air India, will partner with Singapore Airlines to revamp Air India if its bid becomes successful. The biggest concern for all potential investors, is the massive debt that Air India currently comes with.

The national carrier owes a massive debt of Rs 50,000 crore to the exchequer and is currently staying afloat on the Rs 24,000 crore it has thus far received as part of the  bailout package extended by the UPA government in 2012. While IndiGo leads the domestic air traffic sector with an almost 40 per cent market share, Air India lags behind with only 14 per cent of the same.