Frugal Indigo hates to waste money
Indigo opts out of race to buy Air India
Indigo opted out of race to buy Air India
Indigo was the only airline, which wanted to buy Airindia. It also met all the criteria set by the government. However, it opted out.
Why did it do so?
Ministry wanted to run Air India as a separate concern. Airlines want to use their existing infrastructure to reduce costs.
Government wants the buyer to retain all the employees for a year. Airlines differ, as they require only half of the current employees.
While ministry wants to seal the deal by October, 2018, airlines take 12–18 months for the due diligence.
Indigo takes pride in frugality:
Rakesh Gangwal opted for frugal lunch while buying 100 Airbus planes.
Indigo did not start in-flight magazine to save fuel and time.
It does not hire consultants to save money.
Know more about Gangwal, who is their chief deal maker.
- His Forbes’ profile
Why happens now?
Government will have to reconsider.
Air India may not get one single buyer. Separate buyers may want to buy different parts.
- Indigo wants its international slots.
- Air Asia may want its domestic slot.
- Another airline may want to acquire airport slots.Indigo will get things at its own terms. Remember Gangwal from above. He is their chief pilot.
Dig deeper: Tarun Shukla’s article about Air India’s long journey to selling itself.
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