New Delhi: The government is contemplating clearing Air India’s dues worth Rs 22,000 crore to vendors before putting up the airline for sale.

The government may also mulling to waive off Air India’s entire working capital debt of about Rs. 15,500 crore to enable the national carrier to attract potential buyers. Through these initiatives Air India’s loan burden will be reduced substantially and make it lucrative for potential buyers.

“We are discussing ways to reduce these dues, which the airline owes to oil companies and various airport operators, among others,” a senior government official on condition of anonymity told a leading business daily.

By restructuring the dues and bringing it to the level of the airline’s revenue, we would certainly improve prospects and attract a better deal for the beleaguered airline. The floor price for Air India has not been finalised yet., he added.

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