The Cabinet today has given an in-principle approval for the sale of the government's stake in national carrier Air India. The government has looked at two proposals, one that looks at complete privatisation and the second that recommends reducing debt of Rs. 30,000 crore through the sale of subsidiaries and assets.

Air India's current interest payments every year amounts to Rs. 4,500 crore, or 21% of annual turnover, which constrains the airline from additional investment and keeps it in a loss-making cycle. The airline has accumulated losses of over Rs. 50,000 crore. The move means the Maharaja of the skies may soon have different owners.