Govt unlikely to demerge Air India as it would erode national carrier's value

Segregating international operations may kill the company's business model and erode its value

Arindam Majumder  |  New Delhi 

The government is unlikely to demerge Air India as it fears such a move could erode the value of the national carrier.  InterGlobe Aviation, which runs India's leading airline IndiGo, has expressed interest in taking over the international business of Air India. But multiple sources in the civil aviation ministry and Air India involved in the divestment process said neither the finance ministry nor the civil aviation ministry favoured a demerger —primarily because allowing buyers to cherry-pick the company’s assets might hinder the sale process. A senior ...

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