Friday, June 02, 2017

Air India to sell prime real estate

New Delhi: Air India is planning to sell its properties and land parcels across the country. Civil aviation minister Ashok Gajapathi Raju met finance minister Arun Jaitley on Thursday to decide the process.

Sources privy to the discussions say the idea is to sell real estate assets in cities, airport locations, and airline offices at prime locations. A consultant will be appointed to make a detailed inventory report of the assets and fix a proper valuation for them. The entire process will be reviewed by a committee, which will comprise of secretary-level officials from the civil aviation ministry and finance ministry, people from Air India, and a retired judge.

“Air India has a vast bank of immovable properties, which have been accumulated over a period of time at various locations in India and abroad. Some of the properties are lying unused for a long time. Besides these, there are some locations from where the airline has stopped functioning; the idea is to sell those assets to see how much it can reduce the company’s debts,” an official close to the developments said.

When asked about it after the meeting between civil aviation minister and finance minister, civil aviation secretary Rajiv Nayan Choubey said the government was considering all options. "At this stage, we are considering all options and we cannot say as to what will be the final decision," Choubey said.
02/06/17 Arindam Majumder/Business Standard