AI-IA merger may hit air pocket

New Delhi: Air India’s woes don’t seem to end. The merger of Indian Airlines and Air India to form National Aviation Corp of India Ltd (NACIL) has hit an air pocket because of uncertainty of leadership at the top. On top of this, its big vision of requiring about 200 more aircraft — in addition to the 111 planes worth Rs 65,000 crore already ordered — has been pruned. Aviation ministry officials recently told the airline of not dreaming to become an "Emirates or Singapore Airlines" overnight and be realistic in the new order.
Sources said, a team of Accenture, that’s studying the integration of the two carriers, has told the aviation ministry that this factor is a big impediment in the merger process. AI CMD V Thulasidas, who is heading NACIL, will retire on March 31, 2008, and a search committee under the cabinet secretary has been formed to find a successor. "With Thulasidas nearing the end of his term and an extension unlikely, there’s no clear line of longterm leadership," source said. The problem at the top is only making matters worse at the lower rung — where the opposition to merger is very acute with the general feeling being AI has taken over IA. Even the top management is learnt to have sharp divisions over division of responsibilities.
Soon, AI’s monopoly among Indian carriers’ over the highly lucrative Gulf sector would be over as Jet has been allowed to fly there from next year. Kingfisher-Deccan combine would fly abroad from next year.
01/12/07 Saurabh Sinha/Times of India

To Read the News in full at Source, Click the Headline

Categories: Air India - International Dec 2007, Air india Budget Dec 2007, Air India Domestic Dec 2007, Air India Regional Dec 2007, NACIL Dec 2007