InterGlobe Enterprises, the Indian conglomerate that holds the largest share in the Indian airline IndiGo, has shown interest in bidding for Virgin Australia Holdings Ltd.
Rahul Bhatia, who owns the IndiGo holding through InterGlobe Enterprises Ltd., is reportedly strategising on how to capitalise on the bankrupt airline.
According to a report by Bloomberg, a source with direct knowledge of the matter revealed that although nothing has been finalized, a proposal to bid on the Australian airline on behalf of InterGlobe Enterprises Ltd. is being prepared.
Earlier, IndiGo had denied reports of bidding for Virgin Australia. The CEO of the firm Ronojoy Dutta had said in a statement that IndiGo had no interest in Virgin Australia.
The country’s largest airline stands to be India’s only airline company to stay profitable.
Virgin Australia is Australia’s second-largest airline and collapsed due to the almost total shutdown of the aviation field amid the coronavirus lockdown. It owed about $4.5 billion to over 10,000 creditors.
Among other sectors, the aviation field was also hard hit by the viral outbreak. Several countries have had to cancel all passenger travel and enforce lockdown. Only cargo flights have been kept on track amid the global health crisis.
Deloitte, the administrator for Virgin Australia bidding, is looking at potential bids to sell the airline founded by Richard Branson within two months of its fallout. According to reports, it has attracted as many as 20 potential buyers by now. However, a Times of India report said that no bid has been made yet.
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