New Delhi/Mumbai — India’s Tata Group, widely seen as a potential suitor for Air India, was unlikely to consider a bid for the state-run carrier as the government’s terms were too onerous, two sources familiar with the matter said. India, keen to sell the loss-making, debt-ridden airline, finalised plans in late March to divest a 76% stake and offload about $5.1bn of its debt. But the government has stipulated that the winning bidder cannot merge the airline with existing businesses as long as the government holds a stake. The winner may also be required to list Air India and would need to abide by conditions designed to safeguard employee interests, restricting its ability to cut staff. Since the terms were disclosed, no company has come forward to say it is interested or to reaffirm previous interest, while Jet Airways and rival IndiGo have opted out of the race. A lack of interest at Tata is likely to put pressure on the government to rethink its terms or even the structure of th...
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