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Hindujas to bid for IA, A-I

The Hinduja brothers are preparing to enter the bidding for Air-India and Indian Airlines, the international and domestic carriers being partially privatised by the Indian government, the Financial Times reported on Friday.

The paper said the four billionaire brothers were thought to have satisfied conditions regulating the auction and were expected on Friday to formally lodge their interest in the carriers.

Air-India, the long-haul airline, was estimated to be worth about $1 billion and Indian Airlines about $750 million, the paper said.

It said the Hindujas would bid for 40 percent of Air-India and 26 per cent of Indian Airlines through two India-based subsidiaries.

But the Hindujas were not the only party interested in the airlines.

A combination of Tata Group, India's largest conglomerate, and Singapore Airlines, which has made two unsuccessful attempts in the past decade to break into the Indian airline sector, was thought to be the frontrunner for Air-India, the paper said.

It said British Airways was also expected join two local groups as an adviser for their bid.

Dubai-based carrier Emirates had also registered an official expression of interest.

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