Formalities for merging Indian and Air India to be completed by July

The technical and procedural formalities for merging the two national carriers, Indian Airlines and Air India, is likely to be completed by July 2007. This information was given by Shri Praful Patel, Minister for Civil Aviation in the Lok Sabha today.
The Minister also said that for the purpose of this merger, a new Company, National Aviation Company of India Ltd., (NACIL) has been incorporated on 30th March 2007 under the Companies Act, 1956. The complete merger is expected to be completed in a phased manner over the next two years.
While the brand name of the merged airline was still under the consideration of the Government, the Minister said that the new airline, with more than 112 aircraft, having an international and domestic footprint would set fresh benchmarks for efficiency and reliability, thus benefiting the civil aviation sector in the country, specially the traveling public.
The new entity will have strategic Business Units (SBUs) in the areas of Integrated Passenger Service, MRO, Ground Handling, LCC, Cargo and other related activities. The proposed SBUs will have nation-wide operations.
In the answer to a separate question regarding the two national airlines, the Minister informed the Parliament that Air India and Indian Airlines have 38 and 74 aircraft respectively in their fleet including aircraft on lease. The average fleet age of Air India and Indian Airlines aircraft presently is 14.6 years and 16.2 years respectively.
It may be recalled that the Government recently gave permission for aircraft acquisition to both the Companies – 68 for Air India and 43 for Indian Airlines.
03/05/07 Press Information Bureau (press release)

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Categories: Air India May 2007, Indian May 2007