Air India has gone through many business proposals to Find additional revenue so that Air India could have a smooth disinvestment.
One business proposal to trade scrap aircraft engine parts have been found feasible and profitable.
Commander of Air India, Rajiv Bansal said the airline plans to vacate unused hangar space at some airports and sell the scrap lying there to cut costs.
The basic procedure of the business model is salvaging of selected engine parts laying at various hangars and then marketing the same. Sale would be done by calling for quotations and released the items to the highest bidder.
“If salvage becomes impossible, 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 at no cost to Air India Ltd,” Air India said.
The highest bidders would have to collect the material from respective sites as well as arrange for cross country transportation, export clearance and repair and meet other relevant requirements.
Air India group operates to 42 international destinations and over 70 domestic stations 140 aircraft
The government has decided to go for strategic disinvestment of Air India and its five subsidiaries.