The National Airline of India is in crisis and the Government of India has accepted the concept of selling the Airlines. The Airlines was in a need of $4.5 billion in the year 2012 to keep the planes flying. But now it has turned out to be a debt of $8 billion though airline has 13% Indian market share and carries over 12 million passengers to around 100 domestic foreign destinations.
There is an expectation that IndiGo airline would be interested in buying the National Carrier. IndiGo enjoys 41% of the market share and with a fleet of 135 planes and 450 aircrafts on order. Furthermore it handles 900 flights a day.
But the President of IndiGo, Aditya Ghosh has categorically expressed his view that IndiGo will not venture in something that is not profitable and threatens the interests of the airline. Ghosh further ensured his employees that if the move does not add value to our employees, customers and shareholders, the airline will not embark on this journey.
IndiGo which is a public limited company, is a low-cost, but the largest Indian carrier and also the eighth largest carrier in Asia.
Despite speculations around, the Indian Cabinet has decided to form an Air India-specific Alternative Mechanism to take forward the disinvestment plan considering the fact that, Air India has a debt burden of over Rs 50,000 crore which is taxpayers’ money.