Air India’s Forgotten Plane: A Cautionary Tale in Asset Verification and Due Diligence

Introduction

Imagine discovering a multimillion-dollar asset that your organization forgot it owned. In a startling real-life episode, Air India uncovered a 43-year-old Boeing 737-200 that had been parked and “lost” at Kolkata Airport for 13 years. The aircraft was grounded in 2012 and somehow omitted from Air India’s records during years of organizational change, only resurfacing after the airline’s privatization when airport authorities demanded its removal. This incident is more than just an aviation oddity – it’s a cautionary tale about the importance of rigorous asset verification, internal audit, and due diligence in any organization. Whether you lead a public sector undertaking (PSU) or a private company, the message is clear: without strong internal controls, even large assets can slip through the cracks.

A long-abandoned Air India Boeing 737-200, grounded since 2012 and forgotten in the inventories, remains parked in a secluded area of Kolkata Airport, gathering dust and memories of a bygone era.

The Air India Incident: How a Plane Was Forgotten for 13 Years

Air India’s long-forgotten Boeing 737-200 (registration VT-EHH) sat in a remote corner of Kolkata Airport for 13 years, effectively overlooked by the airline. The over-40-year-old cargo jet had been grounded in 2012 and even removed from the airline’s active records, vanishing from official inventories. It wasn’t until 2025 – three years after Air India’s privatization by the Tata Group – that Kolkata Airport authorities inquired about the derelict plane, prompting the airline’s realization that it still owned the aircraft. Once this discovery was made, Air India swiftly verified the jet’s identity and completed its belated sale, finally removing this relic of the past from its fleet.

Air India’s CEO, Campbell Wilson, acknowledged the oversight with candid surprise. In a message to staff, he noted that disposing of old aircraft is usually routine, “but this one is – for it’s an aircraft that we didn’t even know we owned until recently! Over time, it was lost from memory and only came to light when our friends at Kolkata Airport informed us of its presence... and asked us to remove it”. After verifying that the plane was indeed Air India’s, the company removed it, with Wilson quipping that they had “removed another old cobweb from our closet”.

How could a major airline misplace an entire airplane? Several factors converged. The jet was older and had been earmarked for a niche use (a postal mail freighter) before being forgotten. The lengthy privatisation process and prior mergers led to paperwork oddities – the plane was omitted from many official documents, causing it to slip from the organization’s institutional memory. And apparently, no internal audit flagged the idle aircraft sitting in Kolkata for all those years. In short, a perfect storm of poor record-keeping and lack of oversight allowed a significant asset to go missing from the books. This saga underscores that without deliberate asset tracking and governance, even critical assets can be left gathering dust.

Lessons Learned: The Importance of Asset Verification and Internal Controls

Air India’s forgotten plane may be an extreme case, but the underlying lesson applies to all organizations. Large enterprises – especially legacy institutions navigating structural changes – face complex challenges in tracking their assets, and these challenges are amplified when records are incomplete or fragmented. Robust asset management isn’t just bureaucracy; it is essential for financial accuracy, operational efficiency, and preventing embarrassing oversights.

Maintain an accurate Fixed Asset Register (FAR) and reconcile it regularly: Every organization should have a comprehensive FAR and update it whenever assets are acquired, transferred, or disposed. Routine reconciliation between the register and actual assets will catch discrepancies early. If Air India had cross-checked its fleet inventory against physical aircraft, a “missing” Boeing would have raised a red flag.

Conduct periodic Physical Asset Verification (PAV): There is no substitute for going on-site to verify that assets recorded on paper (or in databases) actually exist and are in use. Regular physical audits – literally walking the tarmac, factory floor, or warehouse – ensure that what’s on the books matches reality. In this case, a physical verification at Kolkata Airport would have identified the orphaned 737 sitting idle. For both PSUs and private companies, annual or surprise asset audits can prevent assets from effectively evaporating due to oversight.

Ensure thorough documentation during corporate transitions: Mergers, acquisitions, privatizations, or restructurings are moments when assets often “fall through the cracks.” It’s critical to carry out exhaustive due diligence of all assets and liabilities during such transitions. In Air India’s case, a rigorous audit as the Tata Group took over should have spotted an aircraft that wasn’t being operated. Organizational change is not an excuse to lose track of assets – it’s exactly when extra vigilance is needed.

Strengthen internal audit controls and accountability: Internal audits shouldn’t just focus on finances in the abstract – they must also cover asset management. Companies should implement controls that trigger alerts when an asset is not in use, not generating income, or incurring costs without activity (for example, accruing storage fees for 13 years). Clear accountability for asset custodianship can ensure someone is responsible for checking on any asset that seems to “go missing” from regular operations.

Not only do these lessons apply to airlines, but they are equally relevant to factories, utilities, banks, tech firms – any organization with significant physical or financial assets. Public sector units often have sprawling asset bases and may rely on legacy systems, making rigorous verification crucial to avoid waste of public resources. Private sector companies, especially those growing through acquisitions or operating across multiple locations, also risk “ghost assets” – items that are on the ground but not on the books (or vice versa). The cost of poor asset tracking can range from financial losses and write-downs to safety hazards and reputational damage.

Efficient Asset Management at DP Jadhav & Co.: A professional evaluates asset documentation outside a property, reflecting the firm's commitment to preventing management oversights with comprehensive checks and balances.

How DP Jadhav & Co. Can Help Prevent Such Issues

At DP Jadhav & Co., we specialize in helping organizations avoid exactly these kinds of asset management pitfalls. The checks and balances that could have averted Air India’s forgotten-plane fiasco are core services we provide to our clients. Our team of Cost Accountants and auditors assists both PSUs and private companies in implementing strong asset governance through measures like:

• Fixed Asset Register (FAR) Reconciliation: We perform meticulous reconciliation of your accounting records with actual physical assets. By regularly matching the books to reality, we ensure no asset is unaccounted for or incorrectly recorded. This process catches discrepancies (like an aircraft that “disappeared” from records) early and keeps your asset register truthful and audit-ready.

• Physical Asset Verification (PAV): Our experts conduct on-site physical inspections of assets across all locations. We verify the existence, condition, and location of each asset and tag them (with barcodes or QR codes if needed) for tracking. Regular PAV exercises mean that every vehicle, machine, or even airplane is periodically checked, so nothing can sit forgotten in a corner for years.

• Internal Audit Controls & Documentation: We help design and strengthen internal audit processes with a focus on asset control. This includes setting up proper documentation workflows for asset life-cycle events – acquisitions, transfers, maintenance, decommissioning, and disposals. By ensuring that every asset movement is documented and reviewed, we create an audit trail that makes it virtually impossible for an asset to slip through the cracks without someone noticing and approving. Robust internal controls and SOPs also instill accountability at each level of asset management.

• M&A Due Diligence: In mergers, acquisitions, or privatization processes, our team conducts thorough due diligence audits to verify all assets and liabilities of the target or transitioning organization. We dive into asset registers, perform site visits, and confirm that the assets on paper actually exist (and vice versa). This way, any “hidden” or overlooked assets – like an old airplane in a remote airport bay – will be uncovered before they become a problem. Our due diligence ensures that decision-makers have a complete picture of what they are acquiring and can factor it into the deal (or cleanup plan).

• Asset Disposal & Governance Advisory: We provide guidance on establishing proper asset disposal procedures and governance frameworks. When it comes time to retire or sell assets, we advise on best practices for approvals, valuation, compliance with regulations, and updating of records. Our goal is to ensure that when an asset is taken out of service, it’s handled in a transparent, well-documented manner. From writing off an obsolete piece of equipment to selling a decommissioned airplane, we help organizations execute disposals without leaving loose ends. In short, we make sure no asset gets left behind in the process and that governance standards are upheld at every step.

By implementing these measures, organizations can significantly reduce the risk of the kind of oversight that led to Air India’s forgotten plane. DP Jadhav & Co. brings experience and proven methodologies to fortify your asset management, so that every asset — big or small — is tracked and accounted for throughout its life cycle.

Conclusion & Call to Action

The curious case of Air India’s missing Boeing 737 shines a spotlight on a simple truth: effective asset management and internal oversight are non-negotiable. No organization, public or private, can afford to have costly assets languish unknown due to gaps in governance. The good news is that these risks are preventable with the right practices and expert guidance. By investing in strong asset verification processes, regular audits, and thorough due diligence, companies can protect their investments, avoid financial losses, and save themselves from public embarrassment.

Don’t wait for a forgotten asset to make headlines in your organization. Take proactive steps now to strengthen your asset oversight and internal controls. DP Jadhav & Co. is here to help – from reconciling your asset registers to auditing your procedures and guiding you through complex transitions. Ensure that every aircraft, equipment, and asset on your books is truly accounted for and optimized. For more information or to discuss your organization’s needs, contact us at contact@dpjadhav.com or visit our website. Let’s work together to turn this cautionary tale into an opportunity for better governance, so you can focus on growth and excellence with peace of mind.

(DP Jadhav & Co. is a Cost Accountants and Business Consultancy firm offering internal audit, asset verification, and financial advisory services to help organizations improve compliance and operational efficiency.)

Sources:

1. Economic Times – Air India finally sells its ‘Baby Boeing’ it didn’t even know it owned

2. Financial Express – “We didn’t even know we owned it!”: Air India sells plane forgotten for more than 13 years

3. Finscann News – Air India Uncovers and Sells Forgotten B737-200 After 13 Years, Highlighting Asset Management Challenges