Keep profitable Air India subsidiaries out of disinvestment says Nitin Gadkari

Keep profitable Air India subsidiaries out of disinvestment says Nitin Gadkari

The announcement of the induction of SpiceJet’s Boeing737 for “C checks” at the maintenance, repair and overhaul (MRO) facility was made here in the presence of Civil Aviation Minister Ashok Gajapathi Raju, Gadkari and Maharashtra Chief Minister Devendra Fadnavis.

As Air India Engineering Services Limited (AIESL) announced induction of first third-party aircraft for major maintenance work at its Nagpur MRO unit, Union Minister Nitin Gadkari said profit-making subsidiaries of Air India should be kept out of proposed privatisation.

The announcement of the induction of SpiceJet’s Boeing737 for “C checks” at the maintenance, repair and overhaul (MRO) facility was made here in the presence of Civil Aviation Minister Ashok Gajapathi Raju, Gadkari and Maharashtra Chief Minister Devendra Fadnavis.

Air India Chairman and Managing Director, Ashwani Lohani and SpiceJet chairman, Ajay Singh were also present. Gadkari, the Minister for Road Transport, Highways and Shipping, is part of the five-member ministerial panel, headed by Finance Minister Arun Jaitley, tasked with deciding on the process of privatising Air India.

“I would urge the aviation minister that the subsidiary running the MRO is kept different from its parent, because if a decision on Air India (stake sale) is taken, I hope this company also doesn’t go to some other party. Any business that is profitable should be encouraged by the government,” Gadkari said.

On June 28, the Cabinet Committee on Economic Affairs gave in-principle approval for considering strategic disinvestment of Air India and five of its subsidiaries. Gadkari also urged SpiceJet to launch services from Nagpur to destinations such as Bengaluru, Chennai, Hyderabad, Kolkata and Delhi, saying there is a huge untapped traffic potential from the city.

Responding to Gadkari’s remarks, Raju said that any suggestions on Air India were welcome, and if they had come from a colleague (Gadkari), they had to be taken “seriously”. “But we all need to work together,” he added. Later, when asked about Gadkari’s views, Raju said, “The discussion on Air India’s divestment is an ongoing process and his comments are welcome.”

This is the first major maintenance work to be carried out for any external party at the Nagpur MRO facility, which will be completed in six days. “Once the capacity at the Nagpur MRO facility is fully utilised, it will create thousands of jobs,” Raju said, expressing hope that foreign airlines will also avail of the MRO services here.

SpiceJet chairman Ajay Singh said the airline is planning to make Nagpur one of its hubs for operations, and launch air services from the city. Built over 50 acres of land in MIHAN special economic zone, the MRO unit was set up as a joint initiative between the Air India and the US aircraft maker, The Boeing Company, in 2010.

Besides maintaining Air India’s Boeing aircraft fleet, it has the mandate to carry out third-party works too. AIESL is working aggressively to expand its foot print in the high-growth potential MRO segment as most of the private airlines carry out these works overseas. So far, Air India and Boeing have invested around USD 116 million in the Nagpur facility. Of this, about USD 107 million has been invested by Boeing alone.

AIESL had signed an agreement with the SpiceJet for C1, C2 and higher checks to be carried out on latter’s Boeing 737 -800/900 aircraft in September last year. The contract is worth USD 6 lakh per year and is valid for three years with assured 100 days of work each year.

About author

TnH Global
TnH Global 4012 posts

Our platform is the most comprehensive, current and accurate content destination for tourism that also offers the opportunity to connect and network with quality buyers and sellers.

Name: TnH Global              Email:

You might also like


Experience a healthy lifestyle, filled with excitement & activities for everyone at Karma Lakelands

Welcome to the epitome of grandeur, nestled inside a haven of nature that you will not want to leave. Spread close to 300 acres of lush, landscaped greens, water bodies,


Emaar Hospitality Group brings exceptional waterfront setting for Address Harbour Point

Emaar Hospitality Group has bring exceptional waterfront setting for ‘Address Harbour Point’ which overlook iconic Dubai Creek Tower Emaar Hospitality Group is highlighting the exceptional location advantage of its Address


IndiGo and SpiceJet hike excess baggage fees for domestic flyers

Three days after the Delhi High Court set aside capping of fee for excess checked-in baggage on private airlines, two major airlines IndiGo and Spice Jet decided to hike their

Travel Trade

Thomas Cook (India) Ltd. Group announces strong results for the Quarter ended September 30

Growth in total income from Operations of 27% from Rs. 21192 Mn. to Rs. 26906 Mn. Profit After Tax increases from Rs. 200 Mn. to Rs. 740 Mn. GST implementation impacts retail,


Emirates welcomes 100th Airbus A380 to fleet

Emirates today celebrates the milestone delivery of its 100th Airbus A380 aircraft at a special ceremony with Airbus at the manufacturer’s delivery centre in Hamburg. Emirates chairman Ahmed bin Saeed


Most Outstanding International Airline of The Year Virgin Atlantic

Nick J Parker Head of India & Middle-East, Virgin Atlantic How do you feel about your airline being awarded with ‘Most Outstanding International Airline of the Year’ award at TnH’s


Our target is to turn railways profitable, double its revenue: Piyush Goyal

Railway minister Piyush Goyal has set a target of doubling the national transporter’s revenues to Rs 4 lakh crore by 2025 to make it profitable by then. Over this period,


Ethiopian to start services to Windhoek, Namibia

Ethiopian Airlines, the fastest growing and the largest African airline, is pleased to announce that it will commence services to Windhoek, Namibia, via Gaborone, starting from 4th October, 2016. Windhoek


GMR’s Hyderabad airport introduces new facility

GMR Hyderabad International Airport Ltd (GHIAL), which operates Rajiv Gandhi International Airport (RGIA) has revamped its infrastructure with new facilities – notably the introduction of express security check. In order


Korean Air and Korea Tourism Organisation (KTO’s) joint marketing initiative

On September, 8th & October 13th, 2017, a road show was organized as part of Korean Air and Korea Tourism Organisation (KTO’s) joint marketing initiative. The rally began with 5


Air India moves Supreme Court seeking cut in Delhi airport charges

Air India says GMR Infrastructure’s Delhi International Airport Ltd is recovering Rs. 300 crore every month through these charges! State-owned Air India Ltd on 24 January moved the Supreme Court


The Leela Palace Udaipur voted one of the best hotels in the world

The Leela voted one of top 15 hotel brands in the world by Travel+Leisure USA 2017 World’s Best Awards Survey. India’s Gem – The Leela Palace Udaipur – Voted one


No Comments Yet!

You can be first to comment this post!