Thursday, October 18, 2018

Air India Sells $33 Million Worth Of Property Amid Debt Crisis

State owned carrier, Air India, has invited bids for 14 of its real estate properties, in the hopes of raising around Rs 250 crore ($33m) to offset a portion of its debts. Following the unsuccessful sale of stakes in the carrier in May this year, the Indian government is seeking to raise cash through the sale of non-essential assets.
The government owned airline has been posting huge losses for several years and has been getting deeper and deeper into debt. As part of a turnaround plan formed in 2012, Air India were expected to monetise real estate holdings to the tune of Rs 500 crore ($67m) a year. So far this has failed to happen.
The properties going on sale this month include commercial and residential land as well as residential flats. They are spread over areas in Mumbai, Kolkata, Chennai, Bengaluru, Pune and Amritsar. Bids are open until 1st November 2018.
If Air India sells property for the expected amount, it would only nibble the smallest chunk out of what is estimated to be a debt of Rs 50,000 crore ($6.7bn).
If Air India sells property for the expected amount, it would only nibble the smallest chunk out of what is estimated to be a debt of Rs 50,000 crore ($6.7bn).
17/10/18 Jo/Simple Flying

0 Comments: