The United Arab Emirates’ national carrier, Emirates Airlines, is set to pull out a bid for the Indian government's stake in Air India, the Hindu Business Line reported.
The news service said the reported decision of Emirates to pull out has come as a surprise, and served a second blow to the government’s plans in two days.
If Emirates Airlines decides not to seek the stake, it will likely become the second potential bidder to pull out. Reports said that London-based steel magnate Lakshmi Mittal, who was being advised by British Airways Plc and Qantas Airways Ltd., had dropped plans to bid for the Indian carrier.
The government hopes that Air India's partner will help reverse its losses, which are expected to rise fivefold to 1.98 billion rupees ($42.4 million) in the year to March 31, according to official estimates.
Senior Emirates officials were quoted by Hindu Business Line in November as saying that the situation in respect of AI was still hazy because of uncertainty over foreign partnership allowed in the airline – Albawaba.com
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