Air India plans to lease buildings to earn revenue

Air India plans to lease buildings to earn revenue

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Government owned, Air India (AI), is now trying hard to build up revenues and unlock the value of its two prime real estate assets. The airlines is now planning to lease out around 1.50 lakh sq ft office space at its headquarters in Mumbai as well as its airlines house, the registered office of which is located in Delhi.

The airline recently invited expressions of interest to appoint a real estate firm, who could advice on the deal. The analysts have opined that the airline could even garner up to Rs. 500 crores through the deal of lease, considering the current dull market conditions.

Sources familiar with the matter said that the airline has round 3 lakh sq ft space at their Nariman point office in Mumbai and Parliament Street office. Out of this more than 1 lakh sq ft is being used by the national carrier and the rest is under-utilized.

Most of the floors of the 23 storey sea facing Air India tower at Nariman point which is considered as the prime business hub, is lying vacant for quite some time. The only major occupant is the software giant TCS. One of the reality consultant said that the rentals in Mumbai and Delhi are hovering at the range of Rs. 300 to Rs. 325 per sq ft.