IndiGo owners invoke United-Pan Am deal to justify Air India bid

IndiGo is keen to start long-haul low-cost flights, as the carrier explores a fundamental change to its business model by looking to acquire international operations of Air India. “Air India’s international operations would bring a very important element to our network,” IndiGo’s co-founder Rahul Bhatia told analysts on a conference call to discuss the airline’s move to buy into the unprofitable and highly indebted carrier. “It will provide a rapid entry into restricted, and in some cases, closed international markets.” Bhatia and fellow co-founder, Rakesh Gangwal, held the call to allay concerns after the company’s announcement to bid for Air India wiped out more than US$500m in market value for IndiGo. Surviving on a taxpayer bailout, Air India hasn’t made a profit for about a decade and has piled up debt of about $7.7b. <br/>