Air India’s 9,000 crore assets to be sold

New Delhi: NP NEWS 24 ONLINE – As part of clearing the depth, the government plans to sell lands, buildings and other realty assets of Air India, which is expected to make the airline competitive and fetch a better valuation during the disinvestment of the airline.

According to a report, government is expected to get around 9,000 crore by selling of the land and real estate properties of debt-laden national carrier Air India, which will trim the Rs 29,000 crore debt held in the special purpose vehicle (SPV) which includes These include Airlines House in Bombay, realty property in Delhi’s Vasant Vihar and land in Baba Kharak Singh Marg, next to Connaught Place. The airline has already put up for sale 28 flats in Mumbai, seven flats in Ahmedabad, and two flats and an office space in Pune, besides several other properties across the country.

The government had originally proposed to offload 76 per cent equity share capital of the national carrier as well as transfer the management control to private players as well as ready with plan B by decided a strategic sale with the divestment of 100% of ground holding services which is known as Air India Air Transport Services Ltd (AIATSL).

Where Air India has a depth of 55,000 crores and by selling these properties, the government expected to make the airline competitive and fetch a better estimate during the disinvestment of the airline.

Last week in a meeting held by Finance Minister, Arun Jaitley approved the transfer of Rs 29,000 crore debt to an SPV — Air India Asset Holding Company.

Previously this year, the government faced the second attempt to sell debt-laden Air India. The government received no Expression of Interest (EoI) even from companies who earlier showed interest in the deal. on the other hand, during NDA-I regime, Air India disinvestment process was scrapped.