Air India to be sold as one entity: Jayant Sinha

NEW DELHI: The government has ruled out the possibility of separating the domestic and international airline businesses of Air India to attract buyers for the national carrier.

The decision to keep the businesses together is significant as IndiGo, the only airline to have evinced interest in acquiring Air India, was more keen to buy the international operations. “Air India will be sold as one entity, which will include both domestic and international entity of the airline,” Jayant Sinha, minister of state for aviation, told reporters on Friday.

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. No-frills 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. The flag carrier’s international flying rights at airports across the globe make it an attractive proposition for any buyer with plans for international expansion.

Sinha also clarified that the Tata Group had made no formal application to 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,” Sinha added.

The clarification came after a news channel reported, citing the minister, that the government had received a formal proposal from the Tata Group. The government plans to sell Air India and get out of aviation business. Along with Air India, it is looking also to sell its subsidiaries that include regional and international airlines (Air India Express and Alliance Air), ground handling and engineering companies.