Top Indian carrier Interglobe Aviation Ltd, which operates under the IndiGo brand has opted out of a race to acquire state-run Air India due to unfitting norms set by the government.
The Indian government, last week released bid documents seeking to sell a 76 percent stake in the money-losing flag in domestic and international carrier Air India.
The proposed sale will also include a 100 percent stake in Air India’s low-cost arm – Air India Express, and a 50 percent stake in its ground-handling arm – SATS Airport Services.
IndiGo in a statement said, “From day one, IndiGo has expressed its interest primarily in the acquisition of Air India’s international operations and Air India Express. However, that option is not available under the Government’s current divestiture plans for Air India.”
Aditya Ghosh, the airline’s president, in the statement said, “We do not believe that we have the capability to take on the task of acquiring and successfully turning around all of Air India’s airline operations.”
IndiGo, Indian conglomerate Tata Group, and Turkey’s Celebi Aviation Holdings have expressed an interest in buying some of Air India’s operations. Singapore Airlines has also said the company has an open mind about making an initial bid.
Indian Prime Minister Narendra Modi’s cabinet gave the go-ahead last year to sell Air India after successive governments spent billions of dollars to keep it solvent.
But its debt burden of about $8 billion and a bloated cost structure have been a concern. Previous attempts to offload the airline have been unsuccessful.
