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Air India under pressure to shape up for second sale attempt

Government has 'no choice' but to prop up debt-hit carrier until buyer is found

The shortage pushed up airfares, allowing Air India to make a windfall.

NEW DELHI -- The Indian government is making further cash injections into Air India conditional on improved efficiency as it looks to boost its chances of finally finding a buyer for the troubled flag carrier.

Saddled with debt of some 550 billion rupees ($7.69 billion) in debt, Air India has been outmaneuvered by private carriers in India's intensely competitive aviation market. High fuel prices and a weaker rupee have added to woes across the sector, with private carrier Jet Airways in the midst of its own financial crisis.

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