The Indian government has shelved the plan to sell Air India. This decision comes three weeks after the proposed 76 per cent stake sale in debt-ridden airline failed to attract any bidders. The proposal for Air India’s privatization was approved in June last year.

Suresh Prabhu, Minister of Commerce and Industry and Civil Aviation of India, said, “The aviation sector globally is going through a difficult time due to high crude oil prices. So, it is not the right time to sell a stake in Air India. We will review the proposal when the situation improves.”

Meanwhile, the flag carrier airline of India will receive funds from the government for its daily operations. In addition, efforts will also be taken to ensure that the airline makes profits before going in for listing.