Air India will manage the cost by selling the junk at airports premises – ZMR Blog
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Air India will manage the cost by selling the junk at airports premises

Air India will manage the cost by selling the junk at airports premises

There is a plan to evacuate unused parking spaces (hangars) at some airports of the state-owned public sector air carrier, Air India. To cut costs, the company will also sell the junk that is lying on the premises. This decision comes in when Air India is preparing for disinvestment.

Last month, Rajeev Bansal, who took over the post of chairman and managing director of the company said that the company is working on timely flight operations such as OTP, improved customer service, and reduced costs in various items. Bansal said in an interview to the news agency PTI that he is working on plans to evacuate the additional space surrounded by the company’s junk at the airports.

He said, “I have noticed that there is a lot of unused stuff in the hangars and we are keeping this place unaccountably. So by selling this junk, we can earn some money. Simultaneously, these vacancies can also reduce the cost of rent. Bansal said that the company has auctioned a plane in Delhi but it stands in the hangar. Similarly, steel junk is lying in Mumbai and we are trying to remove it so that hangars can be emptied.”

For general information, a space in the airport facility where maintenance of the airplanes is done is termed as Hangar. Air India has approximately 10 such hangars in diverse airports all over the country. The government-owned airliner operates in 42 international destinations and has 70 domestic stations. The fleet size of the company is 142 aircraft.

air india

With the implementation of other cost-cutting plans, Air India is also planning to cut back on some routes that are operated by its other subsidiaries and itself, comprising the Gulf region.

The company is presently functioning under a huge debt of over Rs 50,000 Crore and is going through some harsh financial situations. Recently, this month, the carrier issued a tender for short-term loans valuation of Rs 3,200 Crore, which is yet to be approved by the government.

Bansal said, “We are under a huge debt, but there is comeback plan granted.”
The government has shown interest to go for a strategic de-investment of Air India and its 5 subsidiaries. A concerned group of ministers are functioning on diverse probabilities involved in the process.

Recently, this month, in meeting with the presence of Railway Minister Piyush Goyal and Civil Aviation Minister Ashok Gajapathi Raju, it was stated that there are two proposals received so far for Air India’s cargo business. One of the proposals has been presented by Tushar Jani Group that operates a leading courier company Blue Dart Express Ltd.

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