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Having already communicated to its employees that IndiGo will not pursue Air India bid if it is not profitable, InterGlobe Aviation, which runs IndiGo Airlines, has now called for a concall with analysts and investors to discuss the plan and strategy on IndiGo’s expression of interest in Air India’s privatisation and to take their queries regarding the same.
In a disclosure to the stock exchanges the company said that it will hold a conference call with analysts and investors on Thursday to discuss IndiGo’s expression of interest in the privatisation of Air India and IndiGo’s views regarding long-haul, international operations. The statement said, “ Rahul Bhatia and Rakesh Gangwal will discuss the plans and strategy on the above topics followed by a question and answer session from analysts and investors.”
Experts say that the letter to employees last week, clarifying company’s position on the acquisition, and now the invitation for a concall with investors and analysts seem to be a result of the knee-jerk reaction by investors at the stock market following the news of company’s interest in acquiring Air India.
InterGlobe Aviation’s share price fell sharply by around 8 per cent between June 28 and June 30 after the company’s interest in Air India became public. However, following the clarifications to the employees, InterGlobe Aviation’s share price regained some of its lost ground on Monday and closed the day with a gain of 2.3 per cent.
Last week in a letter to the Ministry of Civil Aviation dated June 28, InterGlobe Aviation expressed its interest to acquire Air India after the government made clear its plans to privatise Air India. “As the Indian Government embarks on on the journey of privatising Air India and given IndiGo’s track record of having created a consistently profitable airline with a strong balance sheet, kindly treat this letter as our expression of interest in acquiring the international airline operations of Air India and Air India Express. Alternatively, we are equally interested in acquiring all of the airline operations of Air India and Air India Express,” said the letter written by Aditya Ghosh, President and Whole Time Director, InterGlobe Aviation.
While there were some concerns in the market regarding the decision to acquire a highly indebted company, Indigo through a letter to its employees looked to assure employees and clarified that it will only pursue the acquisition if it is profitable.
“Let me be very clear that if it is not profitable and does not add value to our employees, customers and shareholders, we will not embark on this journey,” Ghosh said in his letter to the employees last week. He further said, “As one of those who bleed blue and who have helped build this great organisation, you can rest assured that your leadership team and the founders of IndiGo will never do anything to jeopardise what you helped build and will always act in the best interest of IndiGo.”