Six major roadblocks in the govt's plan to put Air India on the block

Tough legal and financial conditions in the EoI may see many suitors back off

Airline companies and experts both say there is one big stumbling block in the terms and conditions of the expression of interest for the sale of Air India. And that is the Rs 50 billion net worth criteria for Indian carriers, which only Indigo Airlines will meet, forcing the others to go for a consortium instead of bidding alone.

In a consortium, Indian carriers not meeting net worth and the profit-after-tax criteria (they have to make PAT in three out of five years) are limited to a 51 per cent stake. This simply means that they can hold only 38