Air India is pursuing ways to revive its financial fortunes amid stiff competition.
After renting out most of the space in its erstwhile iconic tower Air India Building in Mumbai, the national carrier has now started the process to lease out around 25,500 square feet space at the Kolkata office complex. The airline, which turned operationally profitable for the first time in a decade in 2015-16 fiscal, is pursuing ways to revive its financial fortunes amid stiff competition.
Air India has sought bids for leasing out three of its six-storied building at landmark C R Avenue locality of Central Kolkata. The move is part of its asset monetisation programme, which kick started in 2016, after a delay of almost four years. "Air India Ltd intends to give on lease and license basis a total built up area of 25,449 sq ft...of its own six-storied building in Kolkata," as per the Request for Proposal (RFP) document. The area would be leased out on "as is where is basis".
The technical bids would be opened on February 23 while the financial bids would be opened on March 16. As per the Turn Around Plan/Financial Restructuring Plan approved by the Cabinet Committee on Economic Affairs (CCEA) back in 2012, Air India is required to monetise its assets and generate Rs 5,000 crore by way of sale, leasing or developing an asset as a joint venture. Under the plan, the carrier is to get financial assistance to the tune of Rs 30,000 crore over a ten-year period.
Air India has been in possession of some properties which are lying vacant and unused for a long time. These include of parcels of land as well as residential and commercial estate in India and abroad. So far, the carrier has been able to sell four of its flats in Mumbai to SBI for Rs 90 crore. Besides, Air India has leased out almost the entire space at its previous headquarters here to various government agencies. In December 2014, Air India and NBCC had entered into an Memorandum of Understanding (MoU) to monetise its land. Even after two years of inking that pact, the plan is yet to take off.
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