Praful Patel frets over delay in IA-AI integration

New Delhi: Civil aviation minister Praful Patel chaired the first review meeting of Air India on Tuesday after Arvind Jadhav took over as the chairman and managing director of the national carrier.
Among the issues that came up during the meeting were the delay in integrating the IT platforms of the erstwhile Indian Airlines and Air India and completing the overall merger process, mounting losses of the merged airline amid an increasing competitive scenario, and the delay in Air India getting government assistance in enhancing its equity base.
According to sources, Air India is hoping for a quick resolution of the case pending with the Central Vigilance Commission (CVC) regarding the ordering of passenger service system (PSS) required for integrating the IT platforms with Indian Airlines.
A delay in this IT integration could cost Air India a place in Star Alliance, a prestigious grouping of international airlines.
It seems Patel assured the airline that CVC clearance for the bid would come in a week.
The minister is believed to have expressed concerns over the delay in completing the merger process between Air India and Indian Airlines: manpower issues and several other key integration issues remain despite the government's keenness to complete the merger fast.
13/05/09 Sindhu Bhattacharya/Daily News & Analysis

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Categories: NACIL May 2009