India approves plan to sell stake in national airline

AP News
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Posted: Jun 28, 2017 12:15 PM
India approves plan to sell stake in national airline

NEW DELHI (AP) — India's Cabinet has approved a plan to sell a stake in the debt-ridden national airline, Air India.

The finance ministry said Wednesday that the government has agreed in principle to sell part of its holding in the airline, which has struggled to become profitable as competition from a number of low-cost airlines has grown.

It said in a statement that a government committee will be formed to work out the details of the sale, including the size of the stake the government will offload.

The committee will decide how to deal with Air India's massive 520 billion rupee ($8 billion) debt.

Air India is currently entirely state-owned. Few other details were immediately available.