Air India’s Airbus A321 is on display at the tarmac of Mumbai airport. Credit: Reuters/Punit Paranjpe/Files
New Delhi: The cabinet on Wednesday, June 28, cleared disinvestment of debt-laden Air India but the final modalities, including the quantum of stake sale, will be decided by a group of ministers.
Finance minister Arun Jaitley said the cabinet has given “in-principle” approval for disinvestment of Air India.
A group will be set up to finalise the modalities/details of disinvestment of Air India, including the quantum of stake sale, he said.
The civil aviation ministry is charting out the disinvestment of the state-run carrier.
Surviving on taxpayers’ money, Air India has been in the red for long and various proposals, including government think tank NITI Aayog’s suggestion for complete privatisation, have been made.
The airline has a debt of more than Rs 52,000 crore and is surviving on a Rs 30,000-crore bailout package extended by the previous UPA government in 2012.