Air India looks to raise ₹3bn via real estate sale

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Cash-strapped Air India (AI, Mumbai Int’l) aims to raise up to INR3 billion rupees (USD40.4 million) by selling several of its properties including booking offices, flats, and staff quarters in major cities across the country. According to a tender notice on the airline’s website, the properties are to be sold through an online auction. Bids may be submitted from July 8, closing on July 9, 2021. News agency Press Trust of India reported the airline planned to raise INR2 billion rupee (USD26.9 million) to INR3 billion rupee (USD40.4 million) from its asset monetisation plan.

On auction are amongst others:

  • a booking office and staff quarters in Aurangabad;
  • offices and a residential plot in Bhuj;
  • five residential units at New Delhi’s Asian Games Village Complex;
  • a residential plot in Bengaluru;
  • four flats in Kolkata;
  • flats in Mangaluru;
  • a residential plot and flats in Nashik;
  • a booking office in Nagpur; and
  • a residential plot in Thiruvananthapuram.

This comes as the government has invited bids for the 100% privatisation of the national airline. As previously reported, shortlisted bidders – understood to be the conglomerate Tata Sons and SpiceJet owner Ajay Singh – have until early July to submit their financial bids, after which an evaluation process may take three to four months, with completion unlikely before September 2021. The airline’s total debt is estimated at more than INR600,740,000,000 rupees (USD7,992,750,000).

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