Air India stake sale: We are too small to bid, says SpiceJet's Ajay Singh

One prominent airline that will be missing from the race to buy a stake in Air India is SpiceJet.

Ruling out any plan to bid in the privatisation process of the national carrier, Ajay Singh, the Chairman and Managing Director of the low-cost airline, today said, "We are too small for that."

Singh was speaking to reporters on the sidelines of the launch of 'SpiceStyle', a retail outlet to sell lifestyle items like belts and sunglasses. SpiceStyle is an initiative by SpiceJet to increase the share of its ancillary revenues to 18 percent from 16 percent to take it to Rs 200 crores this financial year.

InterGlobe Aviation, the company behind India's largest no-frills airline IndiGo, Thursday officially expressed its intent to the government to bid for Air India.

Watch: Cabinet To Take A Call On Air India | Air India On A Wing And A Prayer

According to media reports, Tata Sons has also informally expressed its desire to buy the Maharaja but there has been no official communication from the group or the government.

The Union Cabinet Wednesday decided to set up a committee—to be headed by Finance Minister Arun Jaitley—to look into and recommend steps for strategic divestment of Air India.

From commanding a 35 percent share in the mid-2000s, Air India’s domestic market share has reduced to just 14 percent. The airline stands behind IndiGo and Jet Airways in the pecking order. On the overseas traffic to and from India, it has a 17 percent share.