India Government may transfer USD4bn of Air India debt to AIAHL

India's Government reportedly plans transfer INR290 billion (USD4 billion) of Air India working capital debt to a special purpose vehicle, Air India Assets Holding (AIAHL), as part of its revival strategy for the airline (Economic Times, 05-Nov-2018). Air India chairman Pradeep Singh Kharola is expected to head AIAHL, which will facilitate the sale of Air India assets and subsidiaries in order to repay the airline's debts and interest liabilities. Following the implementation of the strategy and transfer of debt to AIAHL, Air India's total debt will decrease to INR260 billion (USD3.6 billion), primarily representing aircraft loans. The Government is also exploring plans to infuse equity into the airline.