Wednesday, October 25, 2006

AI, IA synergy gains seen at 3-4%

Bangalore: Accenture, the consultant for the Air India and Indian Airlines merger, in its preliminary report presented to the two airlines and the Ministry of Civil Aviation on October 12 has said that the cost savings and revenue appreciation arising out of the synergies between the airlines would be “nearly 3-4% to start with.”
Sources said the consulting firm has examined “possible synergy in the areas pf sales and distribution, fuel procurement, material procurement, passenger amenities, ground handling, parking facilities and other allied services.”
It is also currently studying the timetable of both the airlines very closely to establish a strong ‘hub and spoke’ network to interconnect Air India’s flights over major Indian gateways. This is likely to result in seamless transfer of passengers from an Indian domestic point to an international destination.
24/10/06 Praveena Sharma/Daily News & Analysis
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