Macbook Air won't allow me to erase. Format and Name are greyed out.

I'm looking to sell my original Macbook Air and after going through each step from the OS X Erase and Install tool from Apple Support, everything still remains greyed out, not allowing me to erase.  I've tried restarting with command, R, and I've also tried shutting down and starting up holding the down the option key.  Neither allows me to erase.  Any suggestions?

Shut down the computer.
Restart the computer and try again.
A new Mac comes with 90 days of free tech support from AppleCare.
AppleCare: 1-800-275-2273
Best.

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