Air India mops up Rs 7.24 bn via assets monetisation plan and space rentals

National carrier Air India has realised as much as Rs 7.24 billion through its assets monetisation programme as well as from space rentals, Parliament was informed Thursday.

Of this, an an amount of Rs 4.10 billion has been mopped up till date through sale of its non-core assets in various cities in India and abroad, Minister of State for Civil Aviation Jayant Sinha said in a written reply to the Lok Sabha.

"Till date, Air India has realized an amount of Rs 4.10 billion through sale of its non-core assets in various cities in India and abroad. AI has also realized a rental income of Rs 314 crore approximate. A total of Rs 7.24 billion has been realised by assets monetization and space rentals," Sinha said.

The Cabinet Committee on Economic Affairs (CCEA) approved the Financial Restructuring Plan (FRP) and Turn Around Plan (TAP) for Air India (AI) in the 2012.

It also approved monetisation of real estate assets in Air India to the tune of Rs 5,000 crore over the next 10 years period with the annual target of Rs 5 billion from fiscal 2013 onwards, he said.

Sinha said Air India has initiated e-auction through MSTC for the sale of some of its non-core assets comprising of residential and commercial properties spread across the country.

As many as 16 properties across Amritsar, Agartala, Bhuj, Bengaluru, Chennai, New Delhi, Gwalior, Hyderabad, Imphal, Kolkata, Lonavala (Maharashtra), Mangalore Mumbai, Nasik, Tiruvanthapuram and Pune have been identified for auction through MSTC, the minister said.

He also said that 14 Air India properties various cities have been put on sale.

Replying to another member's question the minister said that Air India expects to save up to Rs 80 million to 100 million per annum from its decision to stop serving non-vegetarian food on board its domestic flights.

Non-vegetarian meals have been discontinued in the economy class of domestic Sector flights from June 2017 to save costs, reduce wastage, improve service and also avoid any chances of mix up of meals, Sinha said in the reply.

The expected annual saving is Rs 80-100 million per annum, he said.