Air India sale: Will not pursue deal if not profitable, IndiGo tells employees
Budget passenger carrier IndiGo's management has told its employees that it will not go ahead with its proposal to acquire Air India, if the deal 'does not add value'.
New Delhi: Budget passenger carrier IndiGo's management has told its employees that it will not go ahead with its proposal to acquire Air India, if the deal "does not add value".
"Let me be very clear that if it is not profitable and does not add value to our employees, customers and shareholders, we will not embark on this journey," Aditya Ghosh, president and wholetime director, IndiGo said in a letter to its employees dated 29 June.
"At the same time, we recognise that the Indian government is taking a big, much needed decision and it is important that this decision is always remembered as a huge success," he said.
"As one of those who bleeds blue and who has helped build this great organisation, you can rest assured that your leadership team and the founders of IndiGo will never do anything to jeopardise what you helped build and will always act in the best interest of IndiGo," Ghosh said.
According to Ghosh, the airline is interested in Air India's international operations.
"Over the past decade, we have created a significant domestic network and that gives us the confidence to build a world class international airline in the scale and scope of some of the largest airlines in the world," he said.
"Without our domestic feed network, it just does not make sense to embark on this journey and if we do go down this path, it would require significant restructuring of the acquired operations."
Ghosh added that: "In that journey, we are not going to take on debts and liabilities that could not be supported by the new restructured operations."
On Thursday, Civil Aviation Minister Ashok Gajapathi Raju said that the budget passenger airline IndiGo has expressed interest in participating in the stake sale of the flag-carrier.
"There has been interest shown for Air India. IndiGo has approached the ministry with a formal expression of interest proposal," Raju told IANS.
According to Civil Aviation Ministry Secretary RN Choubey, a formal proposal from IndiGo was received after Wednesday's Cabinet decision on Air India's divestment.
The Union Cabinet's decision on Air India comes after NITI Aayog in a recent report to the Civil Aviation Ministry recommended strategic disinvestment in the loss-making Air India.
At present, the national passenger carrier has a debt burden of more than Rs 50,000 crore.
Subscribe to Moneycontrol Pro at ₹499 for the first year. Use code PRO499. Limited period offer. *T&C apply
Manu, one of the country's brightest medal hopes at the upcoming Games, thanked Rijiju for his prompt intervention but is also hoping for action against the Air India officials at Delhi airport. Later, Air India, too, apologised for the conduct of its staff.
The aircraft had been grounded even as the authorities were making alternative arrangements for flying the 45 passengers to Tiruchirappalli later tonight, airport sources said