India to sell controlling stake in troubled Air India, along with most of its debt
New Delhi — India is selling a controlling stake in its flagship carrier along with two-thirds of the loss-making airline’s roughly $7.8bn debt, as Prime Minister Narendra Modi moves ahead with the nation’s most high-profile asset sale in decades. The government will sell 76% of Air India, according to a document uploaded on the civil aviation ministry’s website on Wednesday. The airline’s overseas budget carrier will be completely sold in the offer, while the state will sell a 50% stake in the ground handling unit separately. The administration may also ask the buyer to conduct an initial public offering (IPO). A successful sale of Air India, which is surviving on taxpayer-funded bailouts, is seen as test case for Modi to burnish his credentials as a reformist attempting to steer the state away from running businesses and boost spending on health and education. The national carrier has five subsidiaries, a joint venture, and a combined workforce of as many as 27,000. "Selling a 76%...
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