IndiGo only interested in taking over Air India’s international and low cost units
India’s most successful budget carrier IndiGo says it has no interest in partnering with the Indian government in a joint venture to run flag carrier Air India.
It has no intention of taking over the ailing national airline lock, stock and barrel, but is keen on its international operations and low cost domestic unit Air India Express.
IndiGo founders Rahul Bhatia and Rohit Gangwal said in a conference call they plan to start low-cost, long-haul operations even if a deal for Air India cannot be reached.
"IndiGo is not looking at acquiring all of Air India’s subsidiaries. From day one, our interest is in international operations," Bhatia told investors.
"We aim profitable growth and not aim to become bigger for the sake of becoming bigger. We are not interested in taking assets which we have to monetise at a later date," he said.
IndiGo flies short haul international routes to Bangkok, Doha, Dubai, Kathmandu, Muscat, Singapore and Sharjah and sees a big attraction in taking over long haul routes to Europe and North America.
However it would employ its tried and tested no frill business model rather than Air India’s existing full service.
Gangwal said IndiGo is hopeful a deal can be struck for AI’s signature long haul routes as it would take numerous years to develop an equivalent international route network by going it alone.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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