AI, IA merger may get delayed

The integration of national carriers Air India and Indian Airlines, which were merged in 2007, has hit a major roadblock with regard to the setting up of a common reservation platform for inventory sales. This will delay the completion of the merger process by at least another 12-15 months.
Raghu Menon, CMD of National Aviation Company of India (Nacil), had said last year that more than 70 per cent of the merger process would be completed by the end of FY09.
The carriers currently have distinct platforms powered by IT service providers Unisys (Air India) and IBM (Indian Airlines). Getting onto a common platform is one of the key requirements for integration which would give them a common airline code — AI, apart from an effective management of inventory and network planning.
Last year, Nacil had floated a tender for an IT service provider and the shortlisted companies included -- EDS and Amadeus. Of the two, EDS had been chosen as the lowest bidder. According to sources in the company, EDS has now gone back to Nacil and asked for the contract period (the period within which the new system needs to be set up) to be extended to 15 months, while the tender specified the period as 9 months from the award of the contract.
"If this is agreed to, the period for setting it will be extended by more than a year. The only other alternative is going for another bidding process, which will mean a lot of delay,” said a source close to the development.
21/01/09 Anirban Chowdhury/Business Standard

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Categories: Air India - International Jan 2009, Air india budget Jan 2009, Air India Domestic Jan 2009, NACIL Jan 2009