Loss-making Air India has sought business proposals for sale of scrapped aircraft engine parts, a move that could potentially add revenues for the disinvestment-bound national airline. According to a tender document, the state carrier plans to salvage select engine parts under a profit sharing arrangement, failing which they would be sold as scrap. The new proposal comes at a time as the government works on the modalities for disinvestment as part of efforts to revive the debt-laden flagship carrier.
The document said that AI is currently seeking business models on a profit-sharing arrangement for possible salvaging of selected engine parts and generate revenue through sale and marketing of such salvaged parts. It said, “In the event there is no possibility of salvage, bidder will have to make arrangements to destroy/dispose of the same as metal scrap and offer maximum revenue value for such disposal sale at agreed rates and no cost to Air India Ltd.” Just last month, Air India CMD Rajiv Bansal said the airline plans to vacate unused hangar space at some airports and sell the scrap to cut costs. “I am finding that there is a lot of unused material lying in hangars and unnecessarily we are holding on. So we can get some money by selling the scrap and also save rentals by leaving the space.”
With an operating fleet of over 140 aircraft, Air India operates to 42 international destinations and over 70 domestic stations. The flagship carrier has a debt burden of over Rs 50,000 Crore and currently survives on a little over Rs 30,000 Crore bailout package extended by the previous UPA government.
