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IndiGo rejects report of partnership with Qatar airways to bid for Air India

Budget carrier IndiGo on Wednesday rejected the report of collaborating with Qatar Airways to bid for Air India.

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Budget carrier IndiGo on Wednesday rejected the report of collaborating with Qatar Airways to bid for Air India.

IndiGo in a statement clarified that there are no ongoing discussions of such nature.

"There have been some Press reports indicating that IndiGo is partnering with an airline from the Gulf to bid for Air India," IndiGo said.

"While IndiGo normally doesn't respond to rumours, in this particular instance, we would like to state that there are no ongoing discussions of this nature," it added.

Earlier on Wednesday, it was reported that IndiGo and Qatar Airways were likely to make a joint bid for Air India.

IndiGo is owned by Interglobe Aviation Ltd, while Qatar Airways is owned by the Government of Qatar. 

Meanwhile, it was reported that the government has not taken a final decision yet on how much stake in Air India it wants to sell, Minister of Civil Aviation Ashok Gajapathi Raju said on Wednesday.

Last year, the Union Cabinet approved privatisation of the debt-laden national carrier, which is staying afloat on taxpayers' money. A group of ministers has been appointed to chalk out the strategy for Air India's stake sale.

"There is no final decision that has taken place, there are lots of suggestion, there is lots of thinking. (Some suggest) why not have a share (in Air India) so that if the market goes up you can recover (debt). I say you are welcome to suggest," Raju, the then aviation minister said at a press interaction in response to a question on whether the government had decided on how much percentage it would like to disinvest in the Air India.

Earlier this month, minister of State for Civil Aviation Jayant Sinha had said that more than 51% of ownership of Air India will be transferred to the private sector.

As per the current rule, foreign investors can own up to 100% in a private domestic airline while foreign airlines 49%. However, as per the existing foreign direct investment (FDI) guidelines, overseas airlines cannot buy a stake in the government-owned Air India.

The government is looking at divesting stake in Air India, which has been a drain on the exchequer due to its huge liability and unprofitable operations. Since the national carrier has many business arms under its umbrella, from ground-handling, maintenance repair and overhaul (MRO), cargo, inflight kitchen, engineering, and others, it is looking to sell them separately to derive maximum value out of them.

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