Jet Airways rules out Air India bid

mumbai — Jet Airways on Tuesday became the latest major Indian airline to rule out a bid for debt-laden national carrier Air India in a new blow to the government’s privatisation plans.

The announcement came just days after rival IndiGo pulled out of the race to acquire Air India’s operations meaning the government now has no clear frontrunner in the sale campaign.

“We welcome the government move to privatise Air India. It is a bold step,” Jet Airways’ deputy chief executive, Amit Agarwal said in a statement e-mailed to AFP.

“However, considering the terms of offer in the information memorandum and based on our review, we are not participating

Considering the terms of offer... and based on our review, we are not participating in the process Amit Agarwal, Deputy chief executive, Jet Airways

in the process,” he added. Once the country’s monopoly airline, Air India has slowly lost market share to new low-cost private players in one of the world’s fastestgrowing airline markets.

Air India ran losses for nearly a decade after a botched merger in 2007 and has debts of around $7.67 billion according to government figures.

It has received $5.8 billion in bailout funds from the government but needs even more working capital to turn it around, experts say.

The Indian government recently said it wanted to sell a 76 per cent chunk of the struggling carrier.

It released bid documents on what would be one of the country’s highest-profile asset sales in decades showing it wants the prospective buyer to take on all of Air India’s operations.