Indigo which is found interested in buying stake in Air India does not want the government as a partner in order to acquire the international operations of Air India and AI Express. The airlines also announced that it will start low-cost long-haul overseas flights “with or without” the AI deal working out.
Rakesh Gangwal of Indigo said “A joint venture or joint ownership with the government is at best a very , very difficult proposition. The government has owned and managed AI for more than 50 years. They are looking to divest in it. From our perspective as a corporate entity , we would not go down a path where there would be a JV or even a minority , majority stake which the government would own. Maybe it’s a good model, but we cannot bring value to that proposition”.
After approval from government to divest their stake in AI, Indigo has sent a formal expression of interest for international operations of AI and AI Express. If acquisitions of only inter national operations are not possible, IndiGo has offered to acquire all operations of AI and AI Express.
According to Rahul Bhatia and Rakesh Gangwal, the two founder-promoters, India is a huge market for international travel but its hubs for globe-rotting are abroad. IndiGo with 40% market share felt that it should enter the long-haul market irrespective of the AI story. They believe that international long-haul markets are ready for right type of low-cost operations.