A day after the Union Cabinet gave a thumbs-up for the disinvestment of the debt-laden Air India, the country’s largest private airline IndiGo has expressed interest in buying stake in the company, said government sources.
The Union Cabinet on Wednesday gave an ‘in-principle’ approval for the privatisation of Air India which is riddled with a debt of USD 8 billion. Finance Minister Arun jaitley said that the government will set up groups to look into how much stake will be sold and into the process of disinvestment. The committee is likely to be headed by Finance Minister Arun Jaitley.
“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,” said Secretary R N Choubey.
Air India’s market share in the competitive airlines industry has tanked to 13 percent as private carriers like IndiGo, Jet Airways and SpiceJet upped their game.
IndiGo is the largest domestic carrier in terms of market shares and controls around 40 percent of the domestic airlines market, with 126 planes and 854 daily flights.
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