A terse tweet on the evening of May 31 by India’s Ministry of Civil Aviation disclosed that “no response has been received for the expression of interest (EOI) floated for the strategic disinvestment of Air India,” leaving the flag carrier under care of the state until the completion of federal elections in 2019. “Further course of action will be decided appropriately,” the ministry added.

Consultants Ernst & Young India served as the transaction advisor for managing the proposed strategic disinvestment of Air India.

“The timeline will give the government a chance to make a realistic valuation regarding the offer,” Vishok Mansingh, CEO of domestic low-fare carrier Trujet, told AIN. He added that political considerations could have led to the non-action during pre-elections as opposition parties cried foul over the government’s sale of its “crown jewels.”

“[The incumbents] do not want to make Air India an election issue,” said an Air India official on anonymity.

The disinterest comes as no surprise given Air India’s heavy debt, bloated staff, and insistence on tying a 24 percent equity stake to the disinvestment.

Jitender Bhargava, former executive director of Air India and author of Descent of Air India, said he felt enough that the government should have shown greater determination and conviction in promoting the carrier to investors, including its international geographical spread, destinations, and trained pilots and engineers. “There should have been re-engineering of work practices before the bid was released,” he added.

Bhargava said Air India will lose further market share from its current 18 percent in the next few years given its position as a government liability will not allow it to induct fleet at the same pace planned by its competition. Indian carriers have ordered some 900 aircraft in the next five years. He added that the 24 percent ownership requirement proved a severe disincentive for investors because government authorities couldn’t guarantee they wouldn’t meddle in its affairs.

In fact, budget carrier IndiGo, which had earlier shown an interest in bidding, pulled out after seeing the government’s condition in the EOI that any new owner would have to operate under the Air India name for three years.