After a controversial merger, govt now plans AI-IA demerger

New Delhi: With the Maharaja reporting huge losses, the government is now mulling over separating Air India and Indian Airlines, which were merged in August 2007 despite widespread criticism, an Indian daily reported on Wednesday.
“The proposal has been placed by the expenditure secretary in the Finance Ministry before the E-GoM on Air India and other ministries are to get back with their comments on February 3 when the group meets again,” the paper said.
“PMO is understood to agree that the merger has been largely on paper but feels that demerger should be ‘thought through’ just as the merger was not,” it added.
Recently, the Parliamentary Standing Committee on Transport, Tourism and Culture slammed the Air India and Indian Airlines merger saying the decision to merge the airlines was “taken in haste, without required homework and consultations.”
“As a result the entire process has been unduly delayed. It has given rise to many problems concerning financial, administrative and operational," the committee said.
National Aviation Company of India Ltd (Nacil), which operates the airline, had put up a Rs 20,000 crore bailout plan, including funds for the ongoing fleet expansion and an equity infusion.
27/01/10 Zee News

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Categories: NACIL Jan 2010