scorecardresearch

SpiceJet ‘too small’ to bid for large carrier like Air India, says Ajay Singh

Once again ruling his airline out of the race for the privatisation-bound Air India, Ajay Singh, the chairman of low-cost carrier SpiceJet, said that the company is too small in size to bid for the large national carrier.

davos, world economic forum, world economic forum 2018, wef 2018, world economic forum india, world economic forum 2018 india, seaplanes, boost tourism, tourism in india, spicejet
Spicejet's CEO Ajay Singh has said this new mode of transport can boost the country's tourism sector in a big way. (Express Photo)

Once again ruling his airline out of the race for the privatisation-bound Air India, Ajay Singh, the chairman of low-cost carrier SpiceJet, said that the company is too small in size to bid for the large national carrier. “ We have always said that SpiceJet is too small to bid for a large airline like the national carrier, Ajay Singh told CNBC TV18. Even in the past, the airlines rejected the news reports that it’s planning to bid for stake sale in Air India. In January this year, Ajay Singh was reported by PTI saying, “Air India is a national asset and I am pretty that sure there will be many takers for it like the Tata-Vistara, Jet Airways, etc. But we are too small to bid for such a large asset.”

Sharing company’s plans going ahead, he said that SpiceJet plans to add 175 Boeing Max aircraft and 25 Bombardier Q400. He also said that airlines plans to start flights to Adampur and Kanpur by May. “ 25 percent of SpiceJet’s capacity is international,” Ajay Singh also said.

The government is planning to disinvest its stake in the national carrier Air India to bring out the airlines from the clutches of debt. The government last month disclosed its plans to sell 76 percent stake in Air India and also to transfer control of management to private companies. The Aviation Ministry announced that the proposed privatisation would also include profit-making Air India Express and joint venture AISATS.

The central government has sought Expression of Interest (EoI) from various companies including foreign airlines. May 14 is the last date for submitting EoI for the  interest bidders. The intimation to the qualified interest bidders would be made by May 28.

Air India has 2,543 international slots, and bilateral rights for 9,70,389 seats negotiated with various countries.

Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news.

Most Read In Industry