IndiGo first to show interest in buying debt-laden Air India

Private carrier IndiGo has become the first airline to express interest in buying Air India, civil aviation secretary RN Choubey today said.

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IndiGo first to show interest in buying debt-laden Air India
Air India is reeling under Rs 52,000 crore debt. (File Photo)

In Short

  • IndiGo Airlines expresses interest in buying Air India.
  • Aviation minister calls privatisation of Air India a difficult decision.
  • I want Air India to become a great airline: Ashok Gajapathi Raju.

Private carrier IndiGo has become the first airline to express interest in buying Air India, civil aviation secretary RN Choubey today said.

The cabinet on Wednesday gave in-principle approval to disinvest from Air India, the country's national carrier, which is Rs 52, 000 crore in debt.

Choubey offered no immediate information on the interest shown by IndiGo, which commands a majority share of India's domestic airline market.

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Speaking to India Today earlier, Civil Aviation Minister Ashok Gajapati Raju had said that the ministry was aware of several businesses and companies reportedly being interested in buying Air India.

WHAT CIVIL AVIATION MINISTER SAID

"Informally and from the press we understand that there are lot of people showing interest (in buying Air India). The whole exercise is going to be very interesting. Let's see what emerges," Raju said when asked about reports that the Tata Group was interested in Air India.

Calling the decision to disinvest from Air India a "difficult" one Raju said, "But it (the decision) was necessary for Air India's survival. I want Air India to become a great airline."

There is no word from the government whether the ultimate buyer of Air India will also have to bear the burden of the national carrier's Rs 52,000 crore debt.

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