MUMBAI: New Delhi intends to sell its entire stake in the debt-crippled national carrier Air India, the government announced Monday, after failing previously to secure any bids for a majority share.
The airline, which owes more than $8 billion, has been struggling to pay salaries and buy fuel, with officials recently warning that it would have to shut down unless a buyer was found.
On Monday the civil aviation ministry released a document inviting bids for a 100 percent stake, setting March 17 as the deadline for initial submissions.
Potential buyers would have to assume around $3.26 billion in debt, the document said.
The government was forced in 2018 to shelve plans to sell a 76 percent stake in Air India after failing to attract any bidders.
India鈥檚 Tata Group, Singapore Airlines (SIA) and IndiGo were all linked to a takeover but subsequently ruled themselves out.
Founded in 1932 and formerly India鈥檚 monopoly airline, the company was once known affectionately as the 鈥淢aharaja of the skies.鈥�
But it has been hemorrhaging money for more than a decade and has lost market share to low-cost rivals in one of the world鈥檚 fastest-growing but most competitive airline markets.
In November aviation minister Hardeep Singh Puri had said the airline would 鈥渉ave to close down if it is not privatized.鈥�
State-run oil companies halted fuel supplies to Air India in August after it fell behind on payments, though the firms agreed to lift the suspension a month later after talks brokered by the government.
The country鈥檚 aviation sector has been stuck in a slump since the collapse of Jet Airways last year.