Why it does not make sense for IndiGo to buy Virgin Australia

Delhi-based low-cost airline IndiGo has clarified that it is not in talks to pick up a stake in Virgin Australia (VA).

In a statement to the media, Ronojoy Dutta, Wholetime Director and Chief Executive Officer, IndiGo said: “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.” VA went into liquidation recently with a debt of around $5 billion.

However, despite this denial, rumours continue to float that InterGlobe Enterprises, a large Indian conglomerate with positions in aviation (IndiGo airlines), hospitality and travel-related services, is interested and is examining the possibility of putting in a bid for VA.