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. Last Updated: 07/27/2016

Aviation Overhaul

ALMATY, Kazakhstan () -- The government of Kazakhstan is forming a new national airline and scrapping its debt-ridden predecessor in a massive aviation rehaul, officials said Monday.

Aue Zholy, the old state airline in this central Asian nation, has accumulated a debt of 9.3 billion tenge ($138 million) and loses about $1 million monthly.

Some of Aue Zholy's assets will be handed over to the new Air Kazakstan, but the airline will not be responsible for any accumulated debt, the government's press office said.