Wednesday, July 12, 2017

24 global destinations: Can IndiGo digest Air India's international operations?

New Delhi: After the Cabinet Committee on Economic Affairs (CCEA) gave its in-principle approval for considering the "strategic disinvestment of Air India" and its "five subsidiaries", IndiGo Airlines founder Rahul Bhatia was the first off the block to make an offer. Bhatia’s statement at the airline’s investors' meet had three key takeaways. He wants to buy Air India Express, the national carrier’s low-cost airline that serves both domestic and Gulf destinations. He wants to take over Air India’s global operations after carving the international business out. Additionally, this reverse-engineering of the 2006 merger between Air India and Indian Airlines that fused international and domestic operations should come at minimal cost to IndiGo’s future. Bhatia said, "We simply do not have the ability or for that matter, the desire to take on debts or liabilities that could not be supported by a standalone restructured international operation of Air India."
12/07/17 Sai Manish/Business Standard