Air India may give wings to Reliance Fresh

Reliance Fresh, the retail venture of Reliance Industries Ltd (RIL) is seeking to acquire one of ageing cargo aircraft of National Aviation Company of India Ltd (Nacil)—formed by the merger of Air India and Indian Airlines—to service its network of retail outlets.
While both companies have denied any such plan, a source close to the developments said RIL is open to either buying or leasing one aircraft from Nacil’s fleet. Reliance Fresh is likely to invest more than Rs 25,000 crore over the next four years in its retail business.
The reserve price for each of the older Boeing aircraft in Air India’s stable is approximately $60 million, while that of old Airbus aircraft is pegged at $20 million each. Of the 147 aircraft in the Nacil fleet, eight are freighters (all from Air India), including four Boeing 737-200s and four Airbus A310-300s. Reliance Fresh wants to source its aircraft from among these.
Jitendra Bhargava, executive director (PR), of Air India said, “Though we have earlier sold one of our freighter aircraft to India Posts, RIL has not approached us as of now. But in future if they approach us for the purchase of our aircraft, we will consider the proposal.” An RIL spokesperson also denied that the company had talked to Air India for the purchase of any cargo airliners.
21/11/08 Shaheen Mansuri/Financial Express

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Categories: Cargo Nov 2008, NACIL Nov 2008, New Nov 2008