As the global civil aviation scenario undergoes rapid changes, Air India and Indian (erstwhile Indian Airlines) strongly believe that their proposed merger by this year-end will endow them with a distinct competitive position but thorny issues of manpower and operational integration may still pose challenges.
Already there is a move to set up at least four joint working groups to prepare a business plan with a combined fleet, a common schedule and a single balance sheet as one organisation. Consultants will be appointed soon to suggest a road map for the merger.
With a combined fleet strength of 160-plus aircraft after merger, AI-IA will be better able to compete with global players like Air France-KLM with 480 aircraft, Lufthansa-Swiss with 401 aircraft, British Airways with 284 aircraft, Singapore Airlines with 126 and Jet-Sahara with a fleet strength of 80 aircraft.
19/06/06 The Hindu
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