BUDGET 2000
SPECIALS
INTERVIEWS
COMMENTARY
GOVT&ECONOMY
Y2K: BIZ FEATURES
INDIA & THE WTO
CREDIT POLICY
BIZ IN THE USA
CARS & MOBIKES
MANAGEMENT
CASE STUDY
BIZ-QUIZ
USEFUL INFO
ARCHIVES
NEWSLINKS
SEARCH REDIFF

Emirates denies plans to buy stake in Air-India

Emirates has denied that it planned to buy a 26 per cent stake in Air-India.

Emirates was not interested in buying shares of the Indian national carrier now that it was already holding 40 per cent in Sri Lankan Airlines, according to Sheikh Ahmed bin Saeed al Maktoum, chairman of Emirates.

"We have no interest. We can't buy the whole world. These are only speculations," he told Dubai newspapers.

He was asked to comment on a report in a leading economic daily from India which said Emirates was in the fray along with some other top airlines for picking up a 26 per cent stake in Air-India. The Indian government had on Friday cleared 26 per cent stake in the carrier to a foreign airline.

Sheikh Ahmed said 26 per cent was too low a stake to ensure management control.

Asked if Emirates would be interested in Air-India at a later stage, Maurice Flanagan, group general manager of Emirates, said, "Our interest would be dictated by sale terms, price and freedom of management. Right now we have very little knowledge about these."

Flanagan indicated that negotiations were held with the Indian authorities to secure a contract to manage ground-handling facilities at certain Indian Airports but these were not successful.

Speaking on the growth of Sri Lankan Airlines, in which Emirates has a 40 per cent stake, Flanagan said the airlines had emerged from a difficult patch recently. "Colombo is well-placed as an airline hub in the region. There is a lot of synergy that can be achieved from the ports and the infrastructure, but it will take some time to be brought into play as growth is likely to accelerate in the next year," he said.

Meanwhile, Emirates and Sri Lankan Airlines on Monday launched a frequent-flier programme under which frequent travellers can earn miles when they fly with either carrier and exchange these for free travel, seat upgrades and other benefits.

UNI

ALSO SEE

Govt to sell 60% of Air-India equity

Air-India divestment seen complete in 10 months

Business