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Last Updated : Feb 22, 2013 08:09 AM IST | Source: CNBC-TV18

Air India bids goodbye to Mumbai; shifts HQ to New Delhi

Air India will soon be vacating its iconic Arabian sea-facing headquarters at Nariman point in Mumbai. The national carrier's board has given formal approval to shift its corporate headquarter to airlines house at Parliament Street in New Delhi.


Air India will soon be vacating its iconic Arabian sea-facing headquarters at Nariman Point in Mumbai. The national carrier's board has given formal approval to shift its corporate headquarter to airlines house at Parliament Street in New Delhi. This move, the struggling national carrier hopes, will generate money and ensure better coordination.


The decision was in the offing for some time now and is in line with Air India's asset-monetisation plan. The decision to shift base to the capital should cut down on expenses but more importantly raise money from renting out the 23-storey Nariman point property. Air India will retain only three top floors of building. It plans to lease out as many 18 floors.


"They have recd proposals for many floors, they have to finalise it," Ajit Singh Civil Aviation Minister said.


The move is also aimed at making Delhi a hub for the airline as the capital has overtaken Mumbai in terms of number of flights operated. Shifting to Delhi will help the airline achieve swift decision-making as the Rs 30,000 crore financial and operational turnaround plan of Air India is being executed from Delhi through the civil aviation and finance ministries and the planning commission. 


On Thursday Air India board approved the proposal to move its headquarter from iconic 23 storey building in Nariman point at Mumbai the building behind me is called airlines house in New Delhi will now be the new headquarter for Air India.  The move is part of the effort to raise cash for the cash strapped airline by leasing out its Mumbai office which happens to situated at one of the most expensive real estate locations in India.


The question though remains - will shifting base to be next door to Ajit Singh and aviation ministry mandarins help Air India's fortunes? The jury is out on that.



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First Published on Feb 21, 2013 10:15 pm
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