Even as the deadline for Expression of Interest (EoI)  to qualify as a bidder for Air India disinvestment is approaching, the potential bidders stayed away from bidding. Indigo and Jet Airways have formally announced that they are not going to participate in the Air India disinvestment process.
Reports suggest that Tata Group, which was also a potential bidder, has also planned to abstain from the bidding process.  Sources told Zee Business, "The debt of Rs 34,000 crore that Air India said will be handed over to the successful the bidder is forcing suitors to stay away from the disinvestment process." 

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The last date for submission of Expression of Interest (EoI) is May 14, 2018, and intimation to the qualified interest bidders would be made on May 28, 2018. Meanwhile,  kicking off the disinvestment process, the government has come up with a detailed preliminary information memorandum, detailing plans to offload up to 76 per cent stake in Air India and transfer the management control to private players. In addition to this, the successful private bidder will have to take the burden of Rs 33,392-crore loan of the national carrier.  The remaining 24 percent stakes of Air India (Maharaja) will remain with the government. 
 

According to the sources, the ambitious strategic stake sale of loss-making Air India as well as its two subsidiaries seems to be hitting air pockets with the two potential bidders -- Jet Airways and Indigo -- deciding to abstain fromm bidding citing the unfavourable terms of the process.   On part of Tata Group, the sources said that the group was not happy with the idea that the government retained 24% stakes of Maharaja and Air India.  None of the potential bidders is interested in taking the burden of debt amount of about Rs 34,000 crore. After the negative reaction from the potential bidders such as Tata Group, Indigo and Jet Airways, it has become difficult for the government to divest stake. 

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The sources said that the government has plans to meet with these airlines to understand their concern/grievances and give solution. The national carrier, AIr India, is staying afloat on taxpayers' money under the turnaround plan approved by the previous UPA government in 2012.
 
By Sameer Dixit