Jet Airways pulls out from participating in the Air India’s auction
The central government suffered another blow. After IndiGo dropped from the race to buy Air India in a debt pile, Jet Airways also announced that it would withdraw from the offer. Jet Airways today said we are not bidding to buy Air India. It seems that there is a slight disadvantage of government thinking to privatize Airindia.
“We welcome the government’s idea of privatizing AIR. This is a very important decision, “Jet Airways deputy chief executive Amit Agarwal said. We have examined the rules offered in the Information Memorandum and have decided not to participate in this process.
Air India has lost its market share in the fastest growing Indian airline market in the world. Air India has dropped its market share for low-cost private players. Thus, Air India has suffered severe losses. According to government statistics, the airline currently has a debt of Rs 52,000 crore. The government recently announced a 76 percent stake in the carrier.
Indigo is the largest airline in the country, which has left the plan to buy Air India. But the company has expressed interest in domestic activities, though Air India has shown interest in international routes. That is why they are going to get away from the race to buy Airindia. At present, Jet Airways has also announced that it will not bid to buy AirIndia.
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