Then whether it wants to sell to domestic buyers or foreign ones. "All these issues will now have to be addressed by the government," Panagariya said.
"Selling it with the current existing debt is going to be very, very difficult even if the sale is open to both domestic and foreign buyers. So, something will need to be done on the debt issue," he said.
The government, in fact, is looking at recasting the debt. Sources said the aim was to restructure working-capital loans in return for assets and land. Air India has been lent working capital by a consortium of 25 banks, led by the State Bank of India.