A day after Jet Airways said it will not bid for debt-laden Air India, Tata Group and Dubai-based Emirates have made it clear that they will also abstain from taking part in the bidding process of the national carrier.
Emirates said it has no plans to buy any airline but open to partner with airlines where our customers benefit, CNBC TV18 reported. The government has said the winning bidder cannot merge the airline with existing businesses as long as it holds stake. The winner may also be required to list Air India and would need to abide by conditions designed to safeguard employee interests.
Since the terms were disclosed, no company has come forward to reaffirm their previous interest. Jet Airways and rival IndiGo have already opted out of the race. IndiGo said it didn’t want to buy Air India’s domestic and international networks together.
The central government had made announcement to sell 76 percent stake in Air India in March this year. According to new term, Air India’s buyer will have to take on debts of Rs 33,392 crore.