The Maharaja has found no takers for the government announced stake sale till the closure of deadline for submitting expression of interest (EoI) on Thursday.
With the failure of Air India to draw a single bid, the hopes of Narendra Modi-led BJP government's first large scale divestment in four years have headed for a nosedive.
The debt-laden national carrier, Air India, have fetched a Rs 54000 crore dent on the exchequer so far.
Zero bidders till the 5pm deadline, despite 160 queries from interested parties earlier, indicated that private buyers got excited with Air India, but not with the government's sale terms.
The government's refusal to retain control, a debt bill of Rs 27ooo crore on the buyer and the burden of Air India's workforce of 27,000 employees, stood out as the major pain points for buyers.
Air India has some of India's most lucrative international and domestic landing and parking slots that are key for airlines.
The buyer would get management, control and gain access to more than 2,500 international slots and over 3,700 domestic slots.
The terms also stipulate that the government would continue to hold a 24 per cent stake, and the winning bidder would need to abide by conditions, not yet detailed, designed to safeguard employee interests.
Ministers including minister of state for civil aviation Jayant Sinha, roads and transport minister Nitin Gadkari, and coal and railways minister Piyush Goyal had often reasoned why the government control should remain over Air India.
"There is nothing wrong with government wanting to retain control on the airline. It is beneficial to buyers that government would take care of half of its debt," said Sinha earlier.
The government has been looking to raise a record Rs 1 trillion from the sale of state assets in the current fiscal year that started on April 1, and Air India was expected to provide a significant contribution.
The activities at the civil aviation ministry today were geared around the submission of EoI for Air India. But till 5pm the special mail desk at the ministry received not even a single EoI for buying the airline.
Civil aviation secretary Rajiv Nayan Choubey and senior ministry officials were seen meeting at the secretary's chamber and frequently coming out to make calls.
Choubey refused to talk to the journalists who had gathered today at the ministry in large numbers. "Not today," he briefly responded when THE WEEK asked if any EoI were received.
The ministry later tweeted: "No response has been received for the Expression of Interest (EoI) floated for the strategic disinvestment of Air India. Further course of action will be decided appropriately."
Buyers both domestic and foreign have evinced interest and backed out of the Air India auction. These include British Airways, who had expressed reservation over government control in the airline.
Singapore Airlines and steel-to-auto conglomerate Tata Group, also the once founder of Air India, too, backed out of the auction citing unfair sale terms.
Tata already operates two airlines in India, including Vistara with Singapore Airlines.
Singapore Airlines has in the past said it was keeping an "open mind" about Air India, but sources in the company have played down SIA's interest in Air India, despite its previous public comments.
Company sources indicated that they are already focussing on the development of their India joint venture with Tata Group. Vistara is due to make new acquisitions and start new routes this year.
IndiGo Airlines and Jet Airways, which had initially shown interest, opted out of the race for Air India after the initial sale terms were disclosed. They have not made any comments since clarifications were issued by the government, earlier this month.
"This is possibly not the best time for the government to attempt a sale of Air India," reasoned Arindam Som, aviation analyst with Fitch Group's research advisory firm India Ratings.
"Possibly the current condition is not conducive as the domestic airline industry at large is under pressure, driven mainly by the dual impact of rising fuel costs globally and weakening currency," said Som in a research note on aviation sector.
Whether the Air India sale would be restarted or when it would be restarted is still uncertain. But one can only hope that the next time, government will offer better buyer friendly terms for the sale of the Maharaja.