The Indian government has extended the deadline for bids for a 76% stake in the flag carrier Air India (AI, Delhi International) to May 31, 2018, from the previously announced May 14, the Hindustan Times has reported.

No reasons for the extension have been given. However, in its clarification remarks, the Indian government has underlined that while it plans to retain a 24% stake in the carrier, its participation will be limited to equity. It will provide full managerial independence to the new owners but also will refrain from providing any further financial aid or guarantees.

The Indian government now expects to announce the qualified bidders on June 15, and afterwards commence negotiations with these parties.

The sale would include Air India Express (IX, Delhi International), which is a wholly-owned subsidiary of Air India, as well as its 50% stake in Air India SATS Airport Services (AISATS), which provides ground handling services at Delhi International, Hyderabad International, Bangalore International, Thiruvananthapuram, and Mangalore Bajpe.

Qualified Interested Bidders must have a minimum net worth of INR50 billion rupees (USD772 million) and must show they are Positive Profit After Tax (PPAT) in at least three of the immediately preceding five financial years from the EOI Deadline

The successful bidder will assume INR333 billion rupees (USD5.1 billion) worth of debt with the balance to then be allocated to Air India Asset Holding Limited which is 100% owned by the Government of India. Details of the debt/liabilities reallocation will be disclosed at the RFP stage.

No entity has thus far confirmed its bid for the debt-ridden Indian carrier, while both IndiGo Airlines and Jet Airways have asserted they will not be taking part in the privatisation.