Under a pile of debts, AI to sell 4 premium Peddar Road flats

Sell out while you can. That’s the maxim Air India (AI) is now shooting for. As part of its efforts to revive its flagging fortunes, the national carrier has now decided to liquidate four of its premium, exclusive residential properties at the tony Peddar Road in south Mumbai through an online auction in October and November.

Going by the current real estate rates, each of these flats, with a carpet area of over 2,160sqft, will help the AI pocket more than Rs15 crore.

The airline has run a debt of Rs43,000 crore and has been suffering continuous losses for years now.

AI officials explain that the four flats at Sterling Apartment in Peddar Road were so far reserved for visiting senior officials and executives.

The airline’s decision to sell the four upmarket flats comes after its futile, year-long attempt to lease out its iconic 23-storey building at Nariman Point.
Very few multinational companies and banks have shown an interest in such an arrangement. Airline authorities blame the high lease rent and the sluggish economy for the bleak response.

The airline’s financial restructuring plan, approved last year, allows the liquidation of several properties, which is expected to raise over Rs5,000 crore in 10 years. Consultancy firm DTZ has been authorised with conducting this process.

A spokesperson for the AI refuses to comment on the e-auction plan.

Real estate experts explain that Peddar Road is among the most expensive areas in Mumbai, commanding more than Rs40,000/sqft. Singers Asha Bhosle and Lata Mangeshkar, Congress MP Murli Deora and actor Suniel Shetty are some of the more well-known faces who live in the area.