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Air India ups efforts to raise money for its turn around

Air India ups efforts to raise money for its turn around
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Apart from leasing its headquarters building in Mumbai, cash-strapped Air India has identified some more properties to monitise them in order to raise Rs 5,000 crore as part of its turn around and financial restructuring plan, Civil Aviation Minister Ajit Singh said on February 27. Air India has identified land at Chennai, Coimbatore and Kolkata, residential plot at DLF Phase-III Gurgaon, a residential apartment in Kolkata and four unoccupied flats in Mumbai, Singh said this in the Lok Sabha.

Ajit Singh said the airline has leased four floors of its headquarters building at Nariman Point, Mumbai on an annual rent of Rs 14.4 crore. Air India is required to monitise its assets in India and abroad to raise Rs 5,000 crore over a period of 10 years, as per the TAP and FRP.

Singh also told the House that the national carrier has managed to earn an additional passenger revenue of Rs 680.13 crore and reduced its cash losses by Rs 1,125.50 crore as compared to the corresponding period (bewteen April and December) of the last fiscal.

Air India has earned an operating revenue of Rs 11,400.45 crore between Apirl and December 2012 while its operating expenses were Rs 13,954.47 crore, resulting in an operating loss of Rs 2,554.02 crores, Singh said, adding but AI turned EBIDTA (Earnings Before Interest, Depreciation, Tax and Amortization) positive to the tune of Rs 48.75 crore.

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