Cancel freighter sale tender: aviation min; AI extends bid date

New Delhi: Civil aviation minister Ajit Singh has asked Air India to scrap its tender to sell six cargo freighters, after finding irregularities with it, said top sources.
The state-owned airline’s regional subsidiary, Alliance Air — headed by Vipin Sharma — had floated a global tender in December 2011 to sell six freighters of the Boeing 737-200 configuration and its spares.
“The tender was against norms as it did not mention any reserve price for these aircraft,” said a senior civil aviation ministry official. The matter was brought to the notice of Singh, who ordered an immediate inquiry. “The minister has asked for the tender to be cancelled,” said the source.
However, when contacted, Air India’s spokesperson said the bid date has been extended by nearly a month till March 5, 2012. “The tender has not been scrapped,” the spokesperson added.
Incidentally, these six aircraft were converted from passenger to cargo five years ago after undergoing massive engine overhauling and a total expenditure of nearly Rs 300 crore, said sources.
“These aircraft were hardly used for 4-5 months and remained grounded. The engines alone for these aircraft can fetch Rs 15-20 crore each,” the source said. “Absence of a reserve price makes the auction process arbitrary. The tender can be manipulated to benefit a certain party,” said a ministry official.
29/02/12 Smita Aggarwal/Indian Express

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Categories: Air India Feb 2012, Cargo Feb 2012