Civil aviation minister Hardeep Singh Puri said in the Rajya Sabha (the upper house of the Indian parliament) last Wednesday that national carrier Air India will have to shut down if not privatized.
This statement comes after attempts to sell the high-profile asset have failed over the last year and a half.
Air India, which started as Tata Airlines in 1932 and later became state-owned, hasn’t made a profit since its 2007 merger with state-owned domestic operator Indian Airlines. The international carrier is burdened with $11 billion in debt.
Our sources have confirmed that Modi’s administration is considering a plan to exclude $7 billion of the airline’s debt in a bid in order to lure the buyers.
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