Mumbai: National carrier Air India's plan to rent out most floors of its iconic 23-storey building in the megapolis that till recently was its headquarters, has hit a stonewall on pricing, as companies are reluctant to pay the rentals being sought by the airline, sources said.
"The airline has set a base rental of Rs 350 per sq ft per annum and there are no takers at this price," Air India sources told PTI.
The source, however, added that the problem has come up only at the Mumbai property and the plans for Kolkata, Chennai and Delhi are on as per the schedule.
As per its approved financial restructuring and turnaround plan approved by the Cabinet in early 2012, when it had bailed out the carrier with Rs 30,000 crore dole out, Air India is required to raise Rs 5,000 crore over the next 10 years through asset monetisation and its biggest asset is the iconic Air India building in the tony Nariman Point area of the the city.
30/06/13 PTI/Economic Times
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"The airline has set a base rental of Rs 350 per sq ft per annum and there are no takers at this price," Air India sources told PTI.
The source, however, added that the problem has come up only at the Mumbai property and the plans for Kolkata, Chennai and Delhi are on as per the schedule.
As per its approved financial restructuring and turnaround plan approved by the Cabinet in early 2012, when it had bailed out the carrier with Rs 30,000 crore dole out, Air India is required to raise Rs 5,000 crore over the next 10 years through asset monetisation and its biggest asset is the iconic Air India building in the tony Nariman Point area of the the city.
30/06/13 PTI/Economic Times
