IndiGo reportedly now mulling stake in Jet Airways
Budget carrier IndiGo has a Plan B ready should its proposal to buy part of up for sale national carrier Air India not pan out.
Although there has yet to be a formal bid, IndiGo’s parent InterGlobe Aviation has stated it wants to take over Air India’s international unit.
If that fails, IndiGo may take a stake in fellow Indian carrier Jet Airways, which has a number of coveted international long haul routes.
According to media reports, IndiGo is prepared to take a stake in Jet Airways and will invest further should the Air India transaction come to nothing.
IndiGo and Jet are the top two Indian private carriers in terms of fleet size and together account for more than half of India’s domestic market.
However it is Jet’s lucrative international routes that is the big prize, although any tie-up beyond a minority stake will likely trigger antitrust concerns.
In 2013, Jet sold a 24% stake to Gulf carrier Etihad Airways.
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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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