Since 2015, Air India has sold 115 properties for Rs 738 crore to pay off its debt, according to Minister of State for Civil Aviation V K Singh. Air India has been monetizing its immovable assets to offset its debt since the decision of the Air India Specific Alternative Mechanism (AISAM) in 2018. As of March 2019, the airline owed around Rs 60,000 crore.
‘Air India has identified 111 parcels of properties for monetization, of which 106 parcels of properties are in India and the remaining five are overseas properties,’ Singh said in a written response to a question in the Lok Sabha on Thursday. He added that the 111 parcels of properties contain 211 units that are currently being monetized.
According to Singh, ‘From 2015 to July 12th, 2021, Air India has received Rs 738 crore from the sale of 115 units. Lease rental income brings in about Rs 100 crore per year for Air India.’ Air India is currently being sold by the government of India. By September 15, qualified interested bidders are expected to submit financial bids for the carrier.