Speculation is mounting that Air India is facing turmoil with reports stating that the carrier is about to default on just over $1 billion in loans, used for the purchase of aircraft.
The airline's total debt amounts to $8 billion.
The Indian government had attempted to sell the airline last year but bidding closed with no bidders.
In a statement, issued on its official Twitter, the Indian Ministry of Civil Aviation said: “As informed by the transaction adviser, no response has been received for the expression of interest floated for the strategic disinvestment of Air India.”
The news comes in the same week as Jet Airways suspended flight operations after a failure to secure investment to maintain operations.