Business

Foreign Carriers British Airways, Lufthansa and Singapore Airlines In A Row To Bid For Air India

NEWS WORLD INDIA | 0
4219
| April 12 , 2018 , 14:56 IST

There has been a lot of speculation on companies interested in buying out state-owned airlines Air India and Air India Express after Government nod towards its privatisation. A new report in the Times of India suggests that the deal is gathering interest from foreign carriers as some major international airlines have expressed their interest in acquiring Air India.

As per the report, 4 major international airlines British Airways, Lufthansa, Singapore Airlines and a Gulf-based carrier are considering the disinvestment proposal and are in active consultation with the government. 

Previously reports stated that the Tata Group, who was supposedly keen on buying Air India and was awaiting detailed memorandum, may not bid for the national carrier as the terms are not workable. Other airlines like Indigo and Jet Airways too had dropped out of the race citing unfavourable circumstances. 

ALSO READ: TATA Group Unlikely To Bid For Air India 
 
The report claimed "Among the Indian players they are in touch with to form a consortium is a medium-sized domestic airline. The head of an international airline is also eying the process with interest. A leading Indian industrial house is also in touch."

It also said that the overseas carriers are in talks with Indian business houses to meet the criterion of substantial ownership and control.

Currently, Air India and Air India Express have a domestic passenger market share of around 12.27 percent and around 42.84 percent international traffic share. Acquiring the airline would give immediate access to the domestic network and to the various restricted and closed foreign markets.