In a major blow to government’s plans to privatise debt-ridden Air India, major Indian international airline Jet Airways has pulled out of a race to acquire the national carrier.
In a major blow to government’s plans to privatise debt-ridden Air India, major Indian international airline Jet Airways has pulled out of a race to acquire the national carrier, Reuters reported. IndiGo and SpiceJet already have ruled out bids to acquire stakes in Air India. Based on our review and considering the terms of the offer included in the information memorandum, company is not participating in the Air India privatisation process, Jet Airways’ deputy chief executive, Amit Agarwal said in a statement emailed to AFP.
Reuters reported citing unidentified analysts that high debt levels of Air India discouraged Jet Airways to participate in the race any longer especially when the company itself is working to reduce its indebtedness. The low-cost air carrier IndiGo had made exit from the race citing reasons that it didn’t want to purchase national carrier’s domestic and international networks together.
Earlier today, while talking to CNBC TV18, Ajay Singh, the chairman of low-cost carrier SpiceJet, said that his company is too small to place a bid for a large national carrier such as Air India.“ We have always said that SpiceJet is too small to bid for a large airline like the national carrier, Ajay Singh told CNBC TV18.
Last month, government had announced to sell 76 percent stake in Air India, as per the preliminary information memorandum that was released on Wednesday on strategic disinvestment of the national carrier. Expression of Interest (EoI) for the sale of stake in Air India and two of its subsidiaries were sought by the Civil Aviation Ministry.