InterGlobe Aviation owned IndiGo Airlines, showed unsolicited interest in buying stakes in the government-owned carrier Air India. This has been reported by a popular news organization which quoted the aviation ministry.
On Wednesday, the Indian government approved the debt laden Air India to become private. This is the first step of privatization so that the government could offload an airline. This is as the airlines are struggling to make profits in the fast-growing competition with the low cost rivals.
Secretary R N Choubey told reporters on Thursday that, “Post the cabinet decision tomorrow, we have received an expression of interest for Air India from IndiGo. They have said that they are interested in Air India.”
Air India, run by the state has a fleet of 118 aircraft. It also flies the highest number of passengers to and from India according to Directorate General of Civil Aviation data. Air India has also acquired parking slots in airports around the world in major cities like New York, Chicago, and London. This is apart from the eighteen-morning departure slots in Mumbai alone.
The stakes in InterGlobe Aviation were trading lower by 3.3 percent at 0841 GMT in the Mumbai market.
