Won't pursue Air India bid if not profitable: IndiGo prez

Won't pursue Air India bid if not profitable: IndiGo prez

After sending a communication to the government on Air India, IndiGo president Aditya Ghosh has said that the airline will not embark on buying Air India if it is not profitable for the company and employees.

The no-frills carrier on Thursday wrote to the Ministry of Civil Aviation expressing its interest to acquire Air India, hours after the government gave its “in-principle” nod to divest the national carrier.

In a letter to employees on Thursday soon after approaching the government, Ghosh assured them that every action would be taken in the best interest of the airline.

“Let me be very clear that if it is not profitable and does not add value to our employees, customers and shareholders, we will not embark on this journey. As one of those who bleed blue and who have helped build this great organisation, you can rest assured that your leadership team and the founders of IndiGo will never do anything to jeopardise what you helped build and will always act in the best interest of IndiGo,” Ghosh said in the letter.

Eyes intl operations

IndiGo had informed the Ministry of Civil Aviation (MoCA) that it is interested in buying the international operations of Air India and Air India Express and if this option is not available, then they would be in for buying it as a whole. Sources said IndiGo’s plan appears to be consolidating its international market as it has already consolidated its “numero uno position” in the domestic market.

Ghosh told the employees that IndiGo is primarily interested in Air India’s international operations. He said a significant domestic network has been created in the past years and this gives confidence to build a world-class international airline.
The MoCA has described the expression of interest by IndiGo as “unsolicited” but formal. Civil Aviation Secretary R N Choubey said the airline would have to apply when the bids are opened.

IndiGo’s letter came even before the government decided on the contours of disinvestment. A Group of Ministers under Finance Minister Arun Jaitley would sit together to finalise the details.

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