New Delhi,
The government has come under pressure to dilute the norms for the stake sale in the debt-ridden Air India as Jet Airways on Tuesday became the latest airline to pull out of the race for the purchase of the 76% stake in the national carrier. Last week, IndiGo had opted out of the race to acquire Air India’s operations.

This latest decision by Jet Airways means that the government now has no clear frontrunner in the sale campaign, forcing it to reconsider some of the norms it has put for the stake sale in the national carrier.

Earlier on April 5, IndiGo had revealed its stance. “From day one, IndiGo has expressed its interest primarily in the acquisition of Air India’s international operations and Air India Express,” said Aditya Ghosh, president and whole-time director of InterGlobe Aviation.

“However, that option is not available under the government’s current divestiture plans for Air India. Also, as we have communicated before, we do not believe that we have the capability to take on the task of acquiring and successfully turning around all of Air India’s operations,” he added.

IndiGo, which is the country’s largest airline by domestic share, was hoping that the government would demerge the domestic operations of Air India, enabling it to bid for just the international business of the national airline.

But, the government has decided to sell Air India, Air India Express and the ground handling unit, AISATS, together.

The preliminary information memorandum (PIM) released by the Ministry of Civil Aviation on March 28 noted that Air India’s buyer will have to take on debts of Rs 33,392 crore.

Meanwhile, reports have emerged that the government may extend the deadline for submitting an expression of interest (EoI) to buy 76% in the state-owned carrier.