IndiGo airlines shows interest in buying stake in Air India

A day after Union Cabinet gave its nod for divestment of Air India, low-cost airline IndiGo formally showed interest in buying stakes in the national carrier.

“We have received an unsolicited expression of interest from IndiGo on (buying stakes in) Air India,” Civil Aviation Secretary R.N. Choubey told reporters in New Delhi.

IndiGo’s president and whole-time director Aditya Ghosh wrote a letter to Civil Aviation Minister Ashok Gajapathi Raju on Thursday to express the interest in Air India disinvestment, a senior Civil Aviation Ministry official said.

“This shows the market views Air India as a tremendous value and potential,” Mr. Choubey said, adding that the national carrier’s stake sale will happen through a tender process. An IndiGo spokesperson declined to comment on the matter.

Minister of State for Civil Aviation Jayant Sinha said other private players, both domestic and international, have also approached the Centre informally to buy stakes in Air India. He, however, refused to divulge any names. “IndiGo is the first market player which has formally shown interest in Air India,” he said.

Mr. Raju said that the government will aim to make Air India an economically viable unit “which entails element of privatisation.”