NEW DELHI : India’s largest domestic airline IndiGo is in the process of putting together a bid for bankrupt airline Virgin Australia, Australian publication Financial Review said in a report on Monday.
IndiGo – a low cost airline with 48 per cent market share in India – is in the Virgin Australia data room and seeking to put together an indicative proposal for administrator Deloitte, the report said.
IndiGo’s interest was in taking Virgin back to its roots as a low cost carrier, and look to return it to profitability by running a lean and mean operation, the report added quoting sources.
Cash-strapped Virgin Atlantic Australia grounded its operations last month amidst the outspread of the covid-19 pamdic. The airline, Australia’s second largest, had appointed Deloitte to oversee its voluntary administration, after the country’s government refused to bail out the debt-ridden carrier.
“We refer to certain media reports stating that IndiGo has expressed an interest in Virgin Australia. We deny the contents of these reports and would like to clarify that IndiGo has not formulated any indicative proposal, nor does it have any interest in this matter,” Ronojoy Dutta, Wholetime Director and CEO, IndiGo said in a statement.
Other parties known to be in the process including Australian private equity firm BGH Capital, global investment giants Bain Capital, Brookfield and Oaktree Capital Management, Macquarie Group, Indigo Partners, and three Australian states; Queensland, NSW and Victoria, the report added.