India’s biggest airline, IndiGo, has expressed unsolicited interest in buying a stake in state-owned Air India, the junior aviation minister said on Thursday, a day after the cabinet approved plans to privatise the carrier.
Several other airlines, domestic and international, have also expressed an interest in buying part of Air India, Jayant Sinha told reporters. He did not name any of the other airlines.
“They (IndiGo) have expressed an interest in the strategic divestment process,” he said. “The process has just begun … it’s a very introductory interest.”
A spokesman for IndiGo, which flies four of every ten Indian domestic passengers and is owned by InterGlobe Aviation , declined to comment.
The airline, launched in 2006, has expanded rapidly in India’s booming aviation market, with a focus on running a single fleet of aircraft and prioritising domestic routes – unlike Air India.
Shares in InterGlobe closed down 2.2 percent in a firmer Mumbai market.
The government’s decision on Wednesday to give “in-principle” approval to sell Air India has kick-started a process that could see the government offload an airline struggling to turn a profit in the face of growing competition from low-cost rivals and its huge debts.
