Aircraft sale yields $ 26 mn for AI

With this transaction, the airline is expecting to finish the current fiscal with a loss of Rs 35 crore which is far lesser than the Rs 61 crore loss it had incurred during the first half.

The airline has also advertised in the international media to phase out two more 25-year old aircraft by middle of the calender 1998. The insertion has invited tenders for four aircraft, of which two selected by the bidders would be sold off. Before the sale to the air freighters, UPS and Triton, even Air India was planning to jump into the business of the air cargo transport. But subsequent studies warned that the airline would not be able to generate cargo by itself during the return trips to many destination. The plan was, therefore, abandoned.

According to Air India officials, the airline is now looking forward to inducting new aircraft, which includes the much-delayed medium capacity long range (MCLR) aircraft. A decision on the MCLRs by the airline’s board is expected by March. The proposal had to be cleared by the new government.

Air India, now going though a major overhaul of its operations, has decided to concentrate on the passenger traffic.