Low-cost carrier IndiGo is likely to make a bid along with Qatar’s national carrier, Qatar Airways, in a consortium for Air India, said sources to Financial Express.

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Earlier, the civil aviation ministry had said that IndiGo had expressed interest in buying the carrier and it had also confirmed the same but said its first priority would be to buy the overseas flights of Air India if the government broke and sold the domestic and international flights as separate entities. However, government sources have told Financial Express that no such bifurcation would be made.

Financial Express sources also clarified that the net worth criteria that bidders must meet is likely to be fixed at Rs 1,000 crore.

So, while the airlines bidding for Air India can have a negative net worth, at least one of the partners in the consortium must have to have a positive net worth. “This means these airlines can come together and bid as a consortium with a private equity partner or a sovereign wealth fund,” said a source to Financial Express.

According to Bloomberg data, IndiGo’s net worth at the end of FY17 was Rs 3,779 crore ($583 million), while Qatar Airways had a net worth of $15.8 billion at the end of FY16. Qatar has a fleet of 200 aircraft and flies to 150 destinations. It is part of the one world global alliance which gives it access to nearly 1,000 airports across the globe.

For IndiGo, acquiring Air India will be a game changer, giving it greater market dominance in domestic flights (the two airlines together account for more than a 50% share) and a ready platform to ramp up its international services with ready slots at some of the most coveted airports across the world and an enviable fleet of 68 wide body aircraft.

Qatar Airways, owned by a sovereign fund, is facing a crisis due to a blockade by Arab nations, which have accused it of supporting terrorism. The airline is now actively looking to extend its operations outside the region by making relevant investments that will aid growth. Qatar Airways has for long been looking to get a foothold in the Indian aviation market, and it has specifically expressed an interest in Indian budget carrier IndiGo on several occasions. A bid for Air India, could just offer that opportunity.

First Published:Mar 21, 2018 6:20 AM IST