Saturday, August 26, 2017

Air India starts selling land in 13 cities

Chennai: Air India has started to sell its land in 13 cities, including a prime land on Anna Salai here where it was once planning to build its city office. The land will be up for bidding soon. The airline has decided to do an e-auction of properties at Chennai, Bengaluru, Mumbai, Kolkata, Ahmedabad, Goa, Lucknow, Bhuj, Nasik, Pune, Trivandrum, Gurugram and Gwalior.
Most of the property are office blocks, land for residential blocks, bungalows, flats and other assets.
The land and property are being auctioned as part of monetisation of assets plan which kicked in after the Union cabinet cleared disinvestment of the airline.
"Though the airline may be making money, the loan burden will pull down the value and will discourage investors," he added.
Air India has a huge debt because it owns all the planes it operates. The Centre has stood guarantee for aircraft acquisition. Aviation minister Ashok Gajapati Raju, in an interview to ET Now, said, "It is in a debt trap. A debt trap might not attract serious buyers. We have to see how we can get out of the trap as far as the economic activity is concerned."
26/08/17 Times of India
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