Tuesday, July 17News That Matters

IndiGo may look at Jet Airways if Air India deal doesn’t work out :

InterGlobe Aviation Ltd-run IndiGo is considering investing in Jet Airways to attain a marked international footprint if it fails to acquire a stake in the debt-laden Air India, reports Mint.

The airline, as it progresses, will focus on finding managers who are experienced and will be able to run IndiGo by global standards, even if it is required to change the current senior management team, sources told Mint.

IndiGo was the first airline to show interest in buying the state-run Air India. The company has sent its bid to the government.

Sources told Mint that even if the bids fail, IndiGo will make a considerable mark in the international destination market through the organic way, but it would be “a slower process.”

As of now, IndiGo flies to 7 foreign destinations — Bangkok, Doha, Singapore, Kathmandu, Muscat, Dubai and Sharjah. Jet Airways and Air India, on the other hand, have flights which cross the Asian continent.

IndiGo is interested in only the international operations of Air India because of its flying rights and slots and said that the airline will maintain Air India’s brand for the international business, according to the report.

If the government urges on the airline to take up both domestic and international operations, IndiGo will negotiate to break-up Air India into four parts according to India’s geography and acquire one along with the international operation, the report added.

Only if this does not work, IndiGo will look into other alternatives, one of them being Jet Airways.

Jet Airways has a lot on its plate. In 2013, Jet sold 24 percent of its stake to Etihad Airways. Etihad, also Jet’s investor, now strategizes the airline’s operations.

source: moneycontrol.com

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