AI, IA may work as separate divisions

New Delhi: There's finally tacit approval in the corridors of power that the merger of Air India and Indian Airlines has not achieved its objective of creating a mega airline but instead could have played a substantial role in bringing the Maharaja to the ICU where he is now battling for life. Highly placed sources said though the aviation ministry is not going to demerge the combined entity, National Aviation Company of India Ltd (NACIL), a plan is being worked on to let the erstwhile IA and AI work as separate divisions under a common umbrella.
"... It's better they live separately without getting divorced than die together," said highly placed sources.
Instead of the promised economies of scale that should have led to huge savings, post-merger the new entity NACIL is incurring a monthly cash loss of Rs 400 crore. While all airlines are suffering at the moment, NACIL's woes are compounded by the fact that AI and IA employees don't see eye to eye on any issue.
AI and IA employees have long said massive differences between them on all fronts like work culture and pay scales could have never led to the plan working out.
The IA officers' association has submitted a letter to this committee in which it said that the merger was not successful and the reasons for that.
The six strategic business units linked to NACIL in areas like engineering MRO, cargo, ground handling and low cost carrier are yet to take shape.
NACIL has also not been able to fly the domestic and international flights on the common code of AI so far, an important pre-condition for joining Star Alliance.
24/10/09 Saurabh Sinha/Times of India

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

Categories: Air India - International Oct 2009, Air India Domestic Oct 2009, NACIL Oct 2009