Low-cost carrier IndiGo has backed out of the race to acquire the Maharaja, citing the recently announced terms to sell Air India. When the government announced the plans to privatise AI last June, IndiGo was the first to show interest in the international operations.
However, the option to buy only the international operations of the Maharaja is not available, under the terms of bidding. The buyer has to bid for AI’s domestic operations, international operations and airport services services company as one entity. Indigo said that it does not have the capability to take on the task of acquiring and successfully turning around all of AI’s airline operations.
The government is selling 76 per cent stake in the carrier along with 100 per cent stake in low-cost international airline Air India Express Ltd and 50 per cent in Air India SATS Airport Services Pvt. Ltd, a joint venture company. However, it will sell Air India, Air India Express and Air India SATS together and not as separate entities, according to the EoI document. The last date for submission of EoIs is 14 May.
Besides IndiGo, Tata Sons have shown interest in acquiring a controlling stake in Air India. Others in the fray to acquire a stake are Naresh Goyal-led Jet Airways (India) Ltd, Qatar Airways Ltd, according to news reports.