Air India has put as many as 27 flats up for sale as part of its asset monetisation plan. State-run auctioneer MSTC has been mandated to e-auction the properties, including several residential and commercial land plots, and office buildings across the country. Bid closing date is set for September 6.
The airline has sought bids for sale of properties in Mumbai, Bengaluru, Kolkata, Chennai, Thiruvananthapuram, Ahmedabad, Pune, Goa, Lucknow, Gwalior, Gurgaon, and Bhuj. AI needs to collect at least £50 million from the sale of the properties. The national carrier's Turnaround/Financial Restructuring Plan provides for equity infusion in the airline worth £3.02 billion up to 2021. The airline is required to monetise its assets and generate £500 million by way of sale, leasing or developing an asset as a joint venture. It has so far, only been able to sell four of its flats in Mumbai to SBI for about £9 million.
The government recently told the Parliamentary Standing Committee on Transport, Tourism, and Culture, that Air India' current business is “not sustainable” as it is neither able to generate enough cash flow nor start repaying even the principal amount on its debt. The airline’s total debt stood at £4.88 billion at the end of March 2017, of which £1.73 billion is aircraft loans and the rest £ 3.15 billion capital loans. The state-run airline’s net loss after tax narrowed to £364.3 million, while operating profit rose to £30 million in the last financial year.
