The government will reportedly sell off Air India’s land and real estate in Vasant Vihar and central Delhi along with its subsidiaries under Air India Air transport services (AIATSL) to trim off Air India’s debt.
The airline which is under debt of Rs 55000 crore will have to sell its real estate properties to regain its status in the aviation industry.
The sale of AIATSL will help AI recover at least Rs 10000 crore.
Finance minister Arun Jaitley headed ministerial panel had last week approved transferring Rs 29,000 crore debt to a special purpose vehicle (SPV) — Air India Asset Holding Company.
“We are looking to raise about Rs 9,000 crore from sale of land and property assets of Air India. These include Airlines House in Bombay, realty property in Delhi’s Vasant Vihar and land in Baba Kharak Singh Marg, next to Connaught Place,” an official told a news agency.