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No favourite for Air-India sale, says Shourie

India's Minister for Divestment, Arun Shourie, denied on Tuesday that he had tipped Singapore Airlines Ltd and its Indian partner Tata Group as best-placed to buy a stake in Air-India.

"The Tatas and SIA are certainly one of the very strong competitors," Shourie said. "But there is no way at all that I can say they are the best or better than others. There is no way we want to pre-empt the bidding."

He was responding to a report in the Straits Times newspaper on Monday which had quoted him as saying the duo had the best chance to buy the 40 per cent stake in Air-India being sold by the government.

"There's obviously some misunderstanding," Shourie said.

"There is no way I can judge which are the best because several parties have filed their interest. We're going through preliminary scanning to make sure they meet the requirements of the advertisement. The process is yet to proceed through many stages."

He said the contenders would have to be considered by the Cabinet, then pre-qualifying bidders would be given access to the airline's data room and then they would be invited to submit technical bids and financial bids.

The Indian government has capped maximum foreign holdings in Air-India at 26 per cent, but the stake can rise to the full 40 per cent up for sale if the bid is made with an Indian partner.

Analysts have said the Singapore flag carrier could have a crucial edge because it is the only foreign contender bidding with an Indian partner.

Rival bidders include Dubai's Emirates airline and the Air France and Delta Airlines SkyTeam Alliance. The airline's pilots union has also submitted a bid.

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