Air India selling off its properties
In foreign destinations like Hong Kong, Nairobi and Mauritius, as part of asset monetisation to garner resources, Air India is considering selling off its properties.
According to the airline officials, Indian banks and public sector undertakings have been approached by the national carrier for disposal of these properties including floorspace in prime locations.
To help the airline find suitable buyers for the assets, Indian High Commissions at these places have also been approached.
An important ingredient of Air India’s financial restructuring and turnaround plans is to monetise real estate assets under which the target of the airline is to raise an estimated Rs 5,000 crore over a period of ten years, from 2013-14 onwards the annual target will be Rs 500 crore.
As per the officials, over the next few years the airline has already chalked out plans to monetise its unutilised or surplus immovable assets in various cities including Delhi and Mumbai properties which are already in the procedure of either being sold, or leased or rented out.
For generating ancillary revenues, Air India was also exploring other avenues, counting leasing out space in some of its booking offices for banks to install ATM outlets.
The officials mentioned that the airline is planning to start with leasing some of its office spaces in cities like Delhi and Mumbai, and soon will be extending to the cities of South India.
The national carrier was also looking at enhancing revenue through web-sales which as of now contributes upto 20 % of its total sales, as part of reducing distribution and marketing costs.
Discounts were also offered for a short while on web-sales in international sectors to enhance online business.
Source: Outlook India
Air India, Asset monetisation, ATM outlets, Discount, Distribution and marketing costs, Garner resources, Indian banks, Indian High Commissions, Online Business, Public sector undertakings, South India, The national carrier
