Will Jet Airways bid for Air India?

Naresh Goyal-led Jet Airways is likely considering to place a bid for ailing national carrier Air India, according to an Economic Times report.

Speaking to the newspaper, Jet Airways’ Chief Executive Officer (CEO) Vinay Dube said, “I think we need clarity on what the government's position is. Once we get more clarity, we will have an opinion."

This is the first time that India’s oldest private airline has formally indicated interest in the Maharaja.

Earlier this month, reports suggested that a consortium of Jet Airways, Air France-KLM and Delta Airlines had expressed interest in the national carrier’s planned disinvestment.

Moving ahead with the strategic disinvestment of the loss-incurring carrier, the government is expected to invite Expression of Interest (EoI) from bidders. The notification is expected to declare the contours for Air India's sale.

The EoI will reveal how much stake the government would look to retain in the airline, if at all. It will also detail the number of units it would be split into, before being sold.

According to reports, the government could retain 26 percent stake in the national carrier, according to the report. Earlier, the government had allowed foreign investment of up to 49 percent in Air India.

On Monday, Moneycontrol had reported that the government could make it mandatory for Air India’s eventual buyer to list the airline on the stock exchanges in three to five years. In case the majority shareholder refuses to launch an initial public offering, the government may want to keep the option of selling its stake via a public offering.

In January, Singapore Airlines, which operates Vistara along with Tata Group, had said it will keep options open on the Air India stake sale, after the government allowed foreign carriers to own up to 49 percent in the national carrier.

Air India has over Rs 50,000 crore debt on its books, much of which will have to be absorbed by the government to attract private interest.