Budget carrier GoAir is in talks with several foreign airlines to sell up to 40 percent in the Wadia-Group owned airlines.
According to a CNBC- TV18 report, Gulf and Asian airlines such as Qatar Airways, Kuwait Airways, and Tiger Airways are the likely contenders although Qatar Airways is likely to emerge as the frontrunner.
The news of GoAir scouting for a foreign airline comes days after Firstpost reported that Tigerair, which is also a low cost airline with flights within AsiaPacific, is in advanced stages of discussion to acquire 24 percent in the Chennai-based SpiceJet.
GoAir has already appointed bankers for the strategic stake sale but the airline refused to comment on ‘market speculation’.
Indian airlines have been scouting for a foreign investor ahead of increase in FDI limits, to pull up their falling profits and to retire debt.
But why any foreign airline would agree to bring in a large amount of money into loss making Indian carriers at a time when the Indian cost environment is so hostile is beyond comprehension.
In the Jet-Etihad case, a major driving factor was the reworking of bilateral agreement between India and Abu Dhabi.
What substantial gains will a foreign investor now get by acquiring minority stake in loss making SpiceJet or unlisted GoAir?