Left Menu
Development News Edition

Participating in sale of Virgin Australia: IndiGo's largest shareholder InterGlobe Enterprises

PTI | New Delhi | Updated: 15-05-2020 16:48 IST | Created: 15-05-2020 16:48 IST
Participating in sale of Virgin Australia: IndiGo's largest shareholder InterGlobe Enterprises

IndiGo airline's largest shareholder InterGlobe Enterprises on Friday said it has signed an agreement to participate in the sale of Virgin Australia, three weeks after the second-largest Australian carrier announced its collapse amid the coronavirus pandemic. Billionaire Rahul Bhatia-owned InterGlobe holds a 37.8-per cent stake in IndiGo, while Rakesh Gangwal, his family members and family trust own 36.64 per cent of India's largest airline.

Virgin Australia collapsed on April 21, putting 16,000 jobs under threat. The cash-strapped carrier announced that it had entered "voluntary administration" to recapitalise the business after being battered by the pandemic, which has crippled the global airline industry.

The move came after the full-service carrier, which suspended almost all flights in March following widespread travel bans, failed to secure a 1.4 billion-Australian dollar (USD 887.60 million) loan from the Australian government. "As regards Virgin Australia, InterGlobe Enterprises has signed an agreement to participate in the sale process and is bound by the confidentiality requirements of that agreement. We are unable to say anything further at this stage," InterGlobe Enterprises said.

In July last year, Gangwal had accused Bhatia of corporate governance lapses at IndiGo and sought the intervention of the Securities and Exchange Board of India (SEBI). Bhatia had denied the allegations. Later in the same year, Bhatia submitted a request for arbitration at the London Court of International Arbitration in the matter.

The global aviation sector has been hit hard this year as various countries, including India, have suspended air travel and gone into a lockdown to curb the spread of the novel coronavirus. India has been under a lockdown since March 25. The virus has so far infected more than 81,900 people and killed around 2,600 in the country.

Indian airline companies have taken major cost-cutting measures in order to survive the pandemic. IndiGo has cut the salaries of its senior employees for entire 2020-21 by up to 25 per cent. GoAir has sent a majority of its employees on leave without pay till May-end. Air India has cut the salaries of its staff members by 10 per cent. Similar measures have also been taken by Vistara, AirAsia India and SpiceJet..



Why COVID-19 is unstoppable in USA despite it being ranked at the top of GHS Index?

Several worst-hit countries such as Italy, France, Spain, the UK, Canada, and Russia have peaked COVID-19 cases in April. Almost all of them have gradually flattened the curve. However, the USA is setting new daily records of infections tha...

COVID-19 seems cooking biggest ever global scam

The increasing number of corruption cases on COVID-19 funds from throughout the world and involvement of high profile persons indicate that the countries cant ignore corruption in their pandemic response programs. This has generated the nee...

Health Management Information Systems lack holistic, integrated, and pandemic resilient character

Being a part of the United Nations system, the World Health Organization WHO deserves its share of rebuke for its alleged failure issue COVID-19 health emergency alerts on appropriate time. However, the pandemic has also exposed loopholes i...

Pride in the time of coronavirus: a welcome move online?

This year is different in many ways not least as celebrations are also taking place against the dramatic backdrop of a global health crisis and a resurgence in grassroots activism following the death of George Floyd in Minneapolis. ...


Latest News

Trump to raise $10 mln at in-person fundraiser in COVID-hit Florida

President Donald Trump is expected to raise 10 million on Friday during a high-dollar fundraiser hosted by the chief executive of a snack company in coronavirus-stricken Florida, according to a Republican official.The in-person fundraiser, ...

China rejects food imports after virus detected

New coronavirus cases have dropped sharply in China, and authorities are turning their attention to concerns that the virus could spread through imported food. Those worries have risen since a June outbreak in Beijing that was linked to the...

WHO believes 'unknown pneumonia' in Kazakhstan could be COVID-19

The emergencies chief of the World Health Organization says the agency believes an unexplained pneumonia outbreak in Kazakhstan is likely due to the coronavirus. Dr Michael Ryan says Kazakh authorities have reported more than 10,000 lab-con...

No guarantee Trump will back India against China if tensions escalate: Former US NSA John Bolton

Former United States national security advisor John Bolton has said that if the Sino-India border tensions escalate, there is no guarantee that US President Donald Trump will back India against China. China has been behaving in a belligeren...

Give Feedback