The aviation sector is facing turbulent times in not just public sector airlines but also private, said Union Minister for Civil Aviation Ashok Gajapathi Raju on Thursday.
“We are running through a lot of turbulent weather, not only public sector but private sector is also crashing…Kingfisher is crashing and right now SpiceJet seems to be giving us harder times as far as airlines are concerned. We have somehow restricted the growth of airlines in the country. We have developed regulation which does not allow Indians to perform. We have to work ahead in this direction,” he said.
Raju was speaking at the signing of an MoU between State carrier Air India and Navratna company NBCC for a joint venture to develop the airline’s surplus land parcels in the country. The distressed carrier has been trying to sell its real estate assets to pay down its debts over two years.
The MoU will be a non binding, non exclusive agreement and each land asset will be individually evaluated for a particular mode of monetisation process, said Air India Chairman and Managing Director Rohit Nandan.
The process is expected to kickstart by identifying some land parcels in Chennai and Vasant Kunj in Delhi. The MoU has given three models of development of such properties.
The Cabinet Committee on Economic Affairs has envisaged monetisation of assets in Air India to the tune of ₹5,000 crore over the next 10 years.
Post the signing of MoU, the shares of NBCC ended 5.47 per cent higher at ₹877.60 at the BSE on Thursday.