Last week, the government of India announced the sell of its 76 percent stake in Air India, and from day one InterGlobe Aviation Limited, the parent company of IndiGo, was interested in purchasing it.
However, as of today, IndiGo president Aditya Ghosh released a statement wherein he said the company was only interested in its International Routes, and not the domestic ones.
“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. Also, as we have communicated before, 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,” he said.
Air India was previously the largest airline in India and the South Asian region, but eventually lost suit to competitors and others factors. India’s airline industry is continuing to grow at the rate of 20 percent each year due to new airlines opening, especially low-cost ones.