New vehicle set to absorb Air India debt, sell off units

New Delhi has approved the establishment of a special purpose company that will take around half of Air India's debt and four subsidiaries that are set to be sold off.Air India Asset Holdings was incorporated on 22 January, and will take Rs295 billion ($4.4 billion) of the carrier's unsecured debt, along with regional unit Alliance Air, Air India Engineering Services, groundhandling arm Air India Air Transport Services and Hotel Corporation of India.The four subsidiaries will be sold off, with proceeds to be used to repay the debt held by Air India Asset.