The new owners of Air India following divestment may not have to worry about its gargantuan debt as the government has decided to move much of this into a special purpose vehicle (SPV) before selling the carrier, senior aviation ministry officials said.
The committee on Air India's divestment led by Finance Minister Arun Jaitley took this decision at a meeting on August 30, they said.
"The committee decided to transfer all debt and assets of Air India to an SPV that will be managed by the government The airline will be sold only with aircraft debt on its books. This will make the airline a much more lucrative proposition," said one of the officials.
