Indian cabinet approves plan to privatise Air India

India approved plans Wednesday to privatise debt-laden Air India, the first step of a process that could see the govt offload an airline struggling to turn a profit in the face of growing competition from low-cost rivals. Finance minister Arun Jaitley said after a cabinet meeting that the govt had given an "in-principle" approval for the sale of a stake in Air India. The approval, the first of a series of steps needed before Air India can be sold, signals prime minister Narendra Modi's determination to fend off union opposition and sell an asset some economists have long argued should be in private hands. India will now form a committee to decide on the details, Jaitley said, including the size of the stake to be sold and whether the govt should write off part, or all, of Air India's US$8b in debt. <br/>