Bidding for Air India is in its fourth round, which is due to end on October 31. However, reports state that this deadline could be extended in order to attract more bidders, which sources state are sparse. The issue putting off buyers is likely the $3bn debt hanging over the airline, which the government may need to absorb to push through a sale. This is not a new problem for Air India, which has been on the block for some time prior to the COVID-19 crisis.
Civil Aviation Minister Hardeep Singh Puri has commented to the Indian Parliament that Air India must be privatised or shut down, as losses continue to grow every day. However, shutting down the airline would leave tens of thousands unemployed, while absorbing more debt from the airline on top of the $8bn already written off will likely be unaffordable for the government.