The Cabinet Committee of Economic Affairs has approved a three-step strategy for Air India’s sale. This includes removing certain assets from the company into a Special Purpose Vehicle, treating its unsustainable debts, and de-merging and strategically divesting the airline’s three profit-making subsidiaries, The Indian Express reported on Thursday.

Air India’s three profit-making subsidiaries are low-cost airline Air India Express Ltd, its ground-handling firm Air India Air Transport Services and the airline’s joint venture with SATS Limited for ground-handling activities in Mumbai, Delhi, Bengaluru and Thiruvananthapuram.

The Air India Specific Alternative Mechanism will oversee this three-step process and work on settling the airline’s massive debt, which is estimated to be more than Rs 52,000 crore. The committee will plan which assets will be incorporated into the Special Purpose Vehicle and also decide on the quantum of disinvestment of the parent company and its subsidiaries and interested buyers.

Finance Minister Arun Jaitley, Civil Aviation Minister Ashok Gajapathi Raju, Transport Minister Nitin Gadkari, Railway Minister Suresh Prabhu and Power Minister Piyush Goyal are part of this panel.