The long-planned privatization of Air India could have an unpleasant side effect for around 7.000 employees: the apartments that are rented by the employer are no longer allowed to be used. In other words, there is a risk of eviction within six months of the sale.

The local daily Times of India writes, among other things, that employees are to be cut numerous social benefits. These include company apartments, which can be rented on favorable terms, but also pension funds. Air India has accommodations for around 7.000 employees around Mumbai. These would have to move out after privatization.

The owner construction of the apartments is quite adventurous, because the land and buildings belonged to the Airports Authority of India. It rents this to Air India at a price of 1,88 million US dollars per year. The employees who live in the apartments then act as sub-tenants. But: In the course of the privatization of Mumbai Airport, the land and accommodation were sold to a private owner. Air India has almost doubled the lease.

These costs are to be excluded in the course of the privatization of Air India, so that the buyer does not have to take over the leased company apartments. The result is that the lease agreement between the private landlord and the airline will end. This means that the employees are threatened with eviction within six months. This can be averted, however, because the owner wants to make offers to the residents. According to local media reports, the new rents will be significantly higher than those previously paid to the employer.