Indian carriers Jet Airways and Spicejet may be keen to enter the fray to bid for debt-ridden flag carrier Air India.
So far only the country’s largest budget carrier IndiGo and Tata Group, which has interests in Air Asia India and Vistara, have confirmed interest in taking over the airline.
"The economics of the game will change completely for whichever airline gets Air India. With its 14% domestic and 17-18% international market share, getting AI will be a paradigm shift for the successful bidder," a senior government source tells the Times of India, adding that Jet Airways and SpiceJet would have ‘no option but to bid.’
A SpiceJet official denied it plans to make an offer but will only make a decision once bidding terms are announced.
To sweeten any deal, the Indian government plans to write off more than half of AI’s $7.6 billion debt.
Even that will still likely put off some bidders, which are lining up to cherry-pick only the business units which fit in with their strategy.
IndiGo is keen to snap up Air India’s international operations as it is already planning its first phase of overseas expansion.
