Now, Jet Airways opts out of Air India disinvestment
New Delhi: Jet Airways on Tuesday said it would not be participating in the Air India disinvestment process, becoming the second domestic airline after IndiGo to make such a decision in less than a week.
The ambitious strategic stake sale of loss-making Air India as well as its two subsidiaries seem to be hitting air pockets with the two potential bidders deciding to keep away citing the contours of the process.
Kicking off the disinvestment process, the government has came out with a detailed preliminary information memorandum, detailing plans to offload up to 76 per cent stake in Air India and transfer the management control to private players.
"We welcome the government move to privatise Air India. It is a bold step. However, considering the terms of offer in the information memorandum and based on our review, we are not participating in the process," Jet Airways Deputy CEO & CFO Amit Agarwal said in an e-mailed statement.
However, he did not divulge specific reason about the decision to not participate in the stake sale process.
Last month, sources had said that a consortium of Jet Airways, Air France-KLM and Delta Airlines was understood to have expressed interest in the disinvestment of Air India.
Naresh Goyal-led Jet Airways' statement on Tuesday comes less than a week after no-frills carrier IndiGo aborting plans to acquire Air India's international operations.
On April 5, IndiGo President and Whole Time Director Aditya Ghosh said that from day one, the airline has expressed its interest primarily in the acquisition of Air India's international operations and Air India Express.