Merged PSU airline may not be a true giant

Mumbai: Though the government’s aim is to create an airline behemoth to take on Asian tigers such as Singapore Airlines and Thai Airways, the merged entity of Air-India and Indian Airlines does not even dominate the domestic skies in many key parameters.
India’s private sector carriers have already become a force to reckon with and they could gain further once more players are allowed to fly international routes.
The total fleet of the unified entity will constitute 30 per cent of the total number of aircaft owned by domestic carriers. While the merged entity’s turnover will be over 50 per cent of the aggregate turnover of the domestic aviation sector, it would carry only 26 per cent of the domestic air travellers. However, in terms of airport infrastructure, the merged entity will have a larger share with over 70 per cent of the real estate at airports (like parking bays, hangars and maintenance slots) in Mumbai and Delhi under it.
04/03/07 P R Sanjai/Business Standard

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Categories: Air India Mar 2007, indian mar 2007