A foreign player has expressed interest in acquiring 49% of soon-to-be-privatized Air India. Aviation secretary R N Choubey said this company has given an “unsolicited expression of interest for AI’s airline arm.”
While the identity of this player is not being revealed at the moment, Singapore Airlines (SIA) is among the foreign airlines that have shown interest in AI’s disinvestment process.
Qatar Airways is the other big airline that wants to start a domestic airline in India and has for long wanted to pick up a stake in IndiGo. Incidentally, IndiGo has given a formal expression of interest for AI’s airline arm, especially the international operations of AI and AI Express.
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“As of now it will not be possible to say who this foreign player is and whether it is a foreign airline or some other company. We need to check with them if they are okay with their identity being revealed at this stage,” said a senior ministry official.
It is likely that the foreign player is an airline as the government had earlier this month allowed foreign airlines to invest up to 49% in Air India, paving the way for Indian players to tie up with foreign airlines to bid for it. “Foreign airlines are allowed to invest up to 49% under government approval route in AI as well.
Vistara CEO Leslie Thng has already said the airline’s promoters have an open mind (to bid) for AI if it made business sense.
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