Air India privatisation: After IndiGo, Jet airways may step back from bidding

Jet Airways reportedly has decided not to participate in bidding for stake in national carrier Air India. According to a report in Business Standard, the Jet Airways management had held discussions with its alliance partners Air France-KLM, Delta, and other investors to put up a proposal. But the airline has now decided to call off its efforts.

“We welcome the government move to privatise Air India. It is a bold step. However, considering the terms of offer in the information memorandum and based on our review, we are not participating in the process,” Jet Airways Deputy Chief Executive Officer Amit Agarwal told the newspaper.

Jet Airways' decision came just four days after IndiGo airlines decided to step back from the process, making the Air India's disinvestment process difficult.

Earlier, budget carrier IndiGo, which had initially evinced interest in acquiring Air India's international operations, said it was not in fray to bid for the national carrier as such option was not available under the disinvestment plan.

"From day one, IndiGo has expressed its interest primarily in the acquisition of Air India's international operation and Air India Express. However, that option is not available under the government's current disinvestment plan for Air India.

"Also, as we have communicated before, we do not believe we have the capability to take on the task of acquiring and successfully turning around all of Air India's airline operations," president and whole time director of IndiGo Aditya Ghosh said in a statement.

IndiGo, a market leader in the Indian skies with close to 40 per cent share, was one of the first players to show interest in the ailing airline soon after the government gave its in-principal approval last June for the disinvestment of the national career.

It had written to the civil aviation ministry expressing its interest to buy out Air India's flight operations, particularly the international services.

On March 28, the ministry came out with the preliminary information memorandum on Air India's strategic disinvestment.

According to the memorandum, the government plans to offload 76 per cent equity share capital of the national carrier as well as transfer the management control. The proposed transaction would involve Air India, its low-cost arm Air India Express and Air India SATS Airport Services Pvt Ltd, which is an equal joint venture between the national airline and Singapore-based SATS Ltd.