Air India's ownership papers of properties missing, plan to raise money goes for a toss

NEW DELHI: Loss-making Air India's plan to raise money by selling or partially leasing more than 100 properties has been stymied by an unusual problem:missing ownership papers. Senior AI officials said that ownership documents of over one-fifth of the properties are not in place delaying the debt-laden carrier's sale plan. Asset sales are critical to turning around the airline which has debt of Rs 43,000 crore and continuous losses for more than four years. 

About 10 properties, including the terminal office in Delhi's Baba Kharak Singh Marg, the employees' housing colony at Nerul (in Navi Mumbai), flats in Mumbai and Hong Kong and property in Chennai have been put on fast track for a sale or lease. But it has been unable to begin the process as papers for many properties, including the 1.7 lakh square feet office inBaba Kharak Singh Marg in Delhi are missing. 

"It has now surfaced that registration was never made for the Baba Kharak Singh Marg office. Possession was taken but registry (of the property) never made. Asset monetisation this fiscal hinged heavily on this property but how will government sell it if the registry has not been made?" a senior government official in the know told ET. These properties in question were acquired over time since its inception. 

This is only one such example, the official said, adding that it now appears that Air India doesn't have the papers for over 20% of the total properties. "Complete papers for properties don't exist, which is posing a big problem to the asset monetisation plan," he said. What has led to this situation is the haphazard and unprofessional manner in which things have always been handled at Air India. 

"In spite of such a large land bank and huge properties, there's never been a realty management department or anything close to it. We have got to know about this only because asset monetisation has to be commenced. Who will buy or take a lease if proper documents are not available?" the official said. Raising Rs5,000 crore over the next 10 years by way of asset sales is part of the airline's financial restructuring plan. International property consultant DTZ has been appointed transaction advisor for the process. 

Similarly, a much-talked about plan to auction a thousand-odd pieces of artwork to garner funds has also proved to be a non-starter as cataloguing of paintings and sculptures has not taken place even months after an expert committee was set up to do so last November. According to an AI official, the airline management has requested this committee to evaluate each art work over a period of three months so that their monetary value and importance can be ascertained, "but the paintings are at our Nariman Point office and other offices around the world. Even the exact number (of paintings) is not yet known".

http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/air-indias-ownership-papers-of-properties-missing-plan-to-raise-money-goes-for-a-toss/articleshow/17946538.cms

Air India takes a hit at Pravasi meet

Transportation woes biggest issue faced by NRIs, says Chandy

In hindsight, Union Minister for Civil Aviation Ajit Singh and his deputy K.C. Venugopal displayed perfect judgement in staying away from the inaugural session of the three-day Pravasi Bharatiya Divas that began here on Monday.

They would have had a tough time, had they been present, as Air India emerged the punching bag for everyone from Ministers to delegates who attended the session - NRIs in the Gulf.

Union Minister for Overseas Indian Affairs Vayalar Ravi, who inaugurated the session, dropped more than a hint when he said he had a fair idea about what topped the list of complaints that the delegates were waiting to air.

“I know what it is. Your problems with the flight back home; the approach of Air India,” he stopped mid sentence with a smile.

Chief Minister Oommen Chandy, who spoke after him, was more forthcoming.

Identifying transportation woes as the biggest issue of the NRIs, he held the beleaguered airline responsible for their plight.

Minister for Norka K.C. Joseph was the most acerbic as he made a no-holds-barred attack on Air India.

“We cannot turn a blind eye to the hardships suffered by the NRIs because of the step motherly attitude of Air India. Therefore, the State government is determined to go ahead with Air Kerala at any cost,” he said to a wide round of applause.

Soman Baby, managing director of the Bahrain-based Daily Tribune , pointed out the absence of decision makers to resolve the complaints of delegates with regard to Air India.

His poser about the absence of Civil Aviation Minister was met with an almost irritated response from Mr. Ravi, who said the Minister was from a different political party.

When it was pointed out that the Minister in question was his Cabinet colleague, Mr. Ravi said he cannot force Cabinet members to attend a meeting.

He had invited Mr. Ajit Singh but he was not interested.

Mr. Ravi, however, was candid enough to admit that he could have asked Mr. Venugopal to attend the meet.

C.R.G. Nair, a delegate from Dubai, wondered what prompted Air India to withdraw its service between Dubai and Thiruvananthapuram some years back.

While Mohammed Kavungal, a delegate from Saudi Arabia, lamented the downward spiral of Air India services over the years, Siddique Hussain from Muscat hoped that the Pravasi Bharatiya Divas deliberations would bring about some change in the approach of Air India officials.

http://www.thehindu.com/todays-paper/tp-in-school/air-india-takes-a-hit-at-pravasi-meet/article4288623.ece

Chandy lambasts Air India

Chief Minister Oommen Chandy has taken up the cudgels for non-resident Keralites in West Asia against Air India.

In his speech at the formal inauguration of Pravasi Bharatiya Divas here on Tuesday, the Chief Minister said a major complaint of overseas Indians, especially in West Asia, was about the “lethargic attitude of Air India.”

“Very often, flights are cancelled at the last moment without proper notice,” he said.

He said Kerala had taken steps to constitute a company called Air Kerala, a budget airline, to fly between Kerala and West Asia.

He said steps were on to implement the project with the participation of non-resident Keralites. The Union government should allow concessions and exemptions so that the project could become a reality soon.

He said the State government had initiated major welfare and social security schemes for the migrants from the State, such as Pravasi Kshema Nidhi and Pravasi Pension and Accident Insurance Scheme. These efforts complemented those of the Union Ministry of Overseas Indian Affairs. In addition, welfare schemes such as Santhwana and Chairman’s Fund were being implemented for the poor among those who had come back from abroad and their family members. Further, a rehabilitation programme for returnees would be launched shortly.

During the recent National Development Council meeting, the Chief Minister had suggested formulating Centrally sponsored schemes to supplement the efforts of the State to rehabilitate the returning migrants. Mr. Chandy said he was hoping for a positive response.

http://www.thehindu.com/todays-paper/tp-national/tp-kerala/chandy-lambasts-air-india/article4289239.ece

Bid to revive AI fortunes: Venugopal

The Union Civil Aviation Ministry is hoping to revive the fortunes of Air India by recruiting young pilots and appointing a committee to suggest cost-cutting measures, K.C. Venugopal, Union Minister of State for Civil Aviation, has said.

Speaking at the Pravasi Bharatiya Divas conference here on Tuesday, Mr. Venugopal said the Ministry was committed to improving the travel experience of Non-Resident Indians.

The confidence of customers in Air India seems to have increased and this is being reflected in bookings.

The Ministry has resumed recruitment of pilots from the Indira Gandhi Rashtiya Udan Academy, and 40 young pilots have joined Air India.

The Minister admitted that there were certain concerns related to the performance of Air India Express, the low-cost carrier of the Air India group, which is specially designed for the Gulf sector. The process of empowering Air India Express as an independent business entity is progressing.

Shortage of pilots is one of the issues limiting its operations. The Ministry is all set to recruit 20 foreign instructor-examiner pilots to train the youngsters, he said.

Several initiatives are being rolled out to make Air India Express a complaint-free service.

Its services to the Gulf sector have been increased and on-time performance has been monitored at higher levels to ensure customer satisfaction, Mr. Venugopal said.

The long-pending demand for amending the rule allowing stretcher facility on Gulf-bound Air India flights has been conceded.

The earlier rule stipulated that a medical certificate from a doctor of Air India in Mumbai was required for allowing stretcher on Gulf sector flights. Now, a non-resident Indian patient can avail himself of the stretcher facility on Air India flights by producing medical certificates obtained locally from Gulf countries, he said.

The Ministry has undertaken the upgrade of 62 airports in the country.

The work on the Chennai, Kolkata, and Bhubaneswar airports is nearing completion, he said.

http://www.thehindu.com/todays-paper/tp-national/tp-kerala/bid-to-revive-ai-fortunes-venugopal/article4289238.ece