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Videocon in talks with US airlines

Indian consumer durables firm Videocon International is in talks with three US airlines for a strategic alliance in its bid to acquire a 26 per cent stake in Indian Airlines, the Financial Express newspaper said on Friday.

"We have received a better offer from the US companies and are considering it," the paper quoted the firm's chairman V N Dhoot as saying. But Dhoot did not give any names to the newspaper, saying it would be a breach of confidentiality.

The paper quoted Dhoot as saying that the company's earlier plan to enter into a technical alliance with Hong-Kong based Cathay Pacific "may be altogether dropped".

Videocon has been shortlisted by the government as one of the bidders for the stake in the domestic carrier, media reports say. Others include the Tata group in tandem with Singapore Airlines, as well as the Hindujas, the British-based expatriate family.

Indian Airlines draws two-thirds of its revenue from domestic routes and has a fleet of 51 aircraft.

The government hopes to complete privatisation of Indian Airlines and international flag carrier Air-India next year.

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