DNA Money Edit: Air India sale may not be easy for govt

The government is in dilemma over Air India privatisation and is rightly re-tweaking the details after couple of bidders pulled out. However, at the same time the government is being prudent as aviation secretary R N Choubey now says that the national carrier may not be sold if they do not get the right price.

The announcement has not gone down well with some critics who are apprehensive that the government in the guise of privatisation may end up selling the 'family silver' at a 'throw away' price. Now, the next question is what happens to the airline if the government doesn't get the desired price? Will the airline continue to run the way it is being done now? Will more public money be pumped into the drain for making the airline run? The government needs to gets its answer in place.

Indigo, which had earlier shown interests in bidding for the deal, have now indicated its inability as it does not sync with its business strategies. Spicejet, which was also earlier rumored to be in the race, also backed off saying that it is too small a player for getting into the deal.

The government has proposed to sell 76% stake in Air India in addition to its subsidiary Air India Express and a 50% stake in AISATS. The government is said to be in plans to shortlist qualified bidders by mid of next month and declare a reserve price for the airline by June end.