Minister of state for aviation
Jayant Sinha has stated that the government will not separate the domestic and
international airline businesses of Air India to attract buyers
for the national carrier.
Earlier, IndiGo, which had expressed
interest in acquiring Air India, was keen to buy its international operations.
“Air India will be sold as one entity, which will include both domestic and
international entity of the airline,” said Sinha.
A decision on whether or not to sell the subsidiaries of Air India as a package
along with the airline was yet to be made, he said. Low cost carrier IndiGo,
which has formally made a request to buy Air India, said that its primary
interest was in the international wing of the national carrier.
Sinha also informed that Tata Group has
not approached the government on bidding for Air India. “The only formal
proposal for Air India has come to us from IndiGo. We expect (other) interested
parties will provide their expression of interest to the transaction adviser,”
Earlier, few news channels had reported
that the government had received a formal proposal from the Tata Group.
In June, the cabinet gave in-principle
the approval for strategic sale of the centre’s stake in Air India, which means
the government, is willing to shed a substantial portion of its stake and hand
over the management of the ailing airline to the private sector.