The two faces of AAI

One has to give it to the Govt to sometimes come up with ingenious ways to make money and that too, AAI, the Airport Authority of India. KFA owes around Rs.300 crore to AAI and it has around 30 aircfats of KFA under its possession which KFA had rented out from lessors. The AAI had said then that the aircraft won't be allowed to be repossessed by lessors unless it gets about Rs.15 crore per plane. And looks like it has come up with a plan.

With lessors asking for aircrafts, it has come out with rate card – Rs.10 crore for large Airbus 320 aircraft, and Rs 2.5 crore for small aircraft (ATRs) for lessors to take them back. It has already earned Rs.5 crore by allowing a lessor to take back two of its ATRs two-and-a-half months back. AAI is using the money to clear its dues, it gives back the aircraft to the lessor who in turn can rent it out and it also frees up space. Thus AAI seems to have come up with a win-win formula. This way, if all the lessors agree to this offer, AAI will be able to earn back 75% of its dues.

Well, in the same note, Air India owes around Rs.1500 crore to AAI, which is 5 times more than what KFA owes. So how come AAI has not seized Air India’s aircrafts and got lessors to pay the money? Rules differ when it comes to private sector and public sector?