IndiGo owners not interested in selling airline's stake

Mumbai
Source:
This story is sourced from Pro
See more Pro news »

The owners of India's IndiGo are not interested in selling a stake in the privately-held low-cost carrier despite the recent relaxation of rules on foreign direct investment in the sector.

New Delhi has allowed foreign airlines, which were previously barred from investing in India, to own up to 49% of an Indian carrier. This has led to Malaysia's AirAsia forming a joint venture with Indian conglomerate Tata Sons, and Abu Dhabi's Etihad looking to buy a stake in Jet Airways.

"Our promoters are not looking for FDI [foreign direct investment]," says IndiGo's chief executive Aditya Ghosh on the sidelines of Routes Asia 2013. "They understand the airline business and they are trying to build a successful legacy in India. They are looking at the long term."

The airline is also not considering a public listing and has no urgent need to raise funds, he adds.

"Banks are always coming and talking to us about a listing but we have not found a reason to raise capital that way. We are comfortable with the way we operate," Ghosh says.

The airline, he adds, has been profitable on a pre-tax and after-tax basis for several years and is on track to be the same in the current fiscal year.