The announcement came just days after rival IndiGo pulled out of the race to acquire Air India’s operations meaning the government now has no clear front-runner in the sale campaign.
“We welcome the government move to privatise Air India. It is a bold step,” Jet Airways’ deputy chief executive, Amit Agarwal said in a statement emailed to AFP.
“However, considering the terms of offer in the information memorandum and based on our review, we are not participating in the process,” he added.
Once India’s monopoly airline, Air India has slowly lost market share to new low-cost private players in one of the world’s fastest-growing airline markets.
Air India ran losses for nearly a decade after a botched merger in 2007 and has debts of around $7.67 billion according to government figures.