AI, Indian merger in 16 weeks

Mumbai: A new airline resulting from the merger of Air India and Indian will be in existence within 16 weeks, according to a letter written by joint secretary, ministry of civil aviation, RK Singh, to allay the fears of jittery employees of Indian.
“The new airline will be a single company with one brand, a single logo and it will operate under a single code,” the statement says. It also chalks out broad contours of the process and tries to clear doubts on the way forward.
The merger will begin with the top brass of the two airlines up to the general manager being integrated from day one. This so that a critical mass of personnel is there to steer the company. The operations and commercial aspects will also be immediately integrated so that the benefits of synergy start flowing. The government expects a saving of about Rs 600 crore by the end of the third year of the merger. However, the process itself will be completed in two years. The government is also putting in place a three-tier grievance redressal system to solve issues arising from the merger.
07/03/07 Economic Times

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Categories: Air India Mar 2007, indian mar 2007