IndiGo denied that it was seeking to acquire Virgin Australia. The Australian Financial Review reported on Monday that it was putting together a proposal to bid for the bankrupt airline.
IndiGo has not formulated any such proposal and neither does it have any interest in this matter, the airline told in a release on Monday. As the publication had said – “India’s biggest airline is in the Virgin Australia data room and seeking to put together an indicative proposal for administrator Deloitte, citing sources “.
Other reports suggested that the IndiGo cofounder Rahul Bhatia’s Interglobe Enterprises is eyeing the carrier. A spokesperson for Interglobe Enterprises declined to the comment.
The news came as a surprise as all carriers, IndiGo included, and travel companies in general, are grappling with the Covid-19 crisis, experts said.
Lockdown and measures aimed at curbing the spread in India and elsewhere have meant a carried on period of little to zero revenue that forcing them to cut costs by firing people or pruning salaries. An executive at a rival airline told that – “the development would be a bizarre distraction which would compromise their war chest in times of Covid”.