India approves restructuring of Air India debt
NEW DELHI: The Indian government has approved a debt restructuring plan to help save Air India.
The once proud national airline is mired in debt as it struggles with the legacy of a poorly executed 2007 merger and a swollen work force.
Civil Aviation Minister Ajit Singh said a Cabinet committee approved the restructuring Thursday.
Under the plan, banks would restructure 180 billion rupees in debt. The government previously committed to an infusion of 40 billion rupees this fiscal year as part of the plan.
Air India is more than 670 billion rupees in debt.