Tuesday, January 11, 2011

AI IA merger may be completed by Jan end

Indian Airlines, the erstwhile domestic carrier, merged with Air India in 2007, but the two have been functioning as separate entities for all practical purposes.
Air India plans to complete its merger with Indian Airlines this month, paving the way for its entry into the prestigious Star Alliance of global airlines. While completion of the merger, the process for which began more than three years ago, will make it easier for passengers to book tickets and travel, Air India's entry into Star Alliance- which has 27 members -is expected to boost the cashstrapped flag carrier's revenue from the next fiscal. Indian Airlines, the erstwhile domestic carrier, merged with Air India in 2007, but the two have been functioning as separate entities for all practical purposes. Tickets for Air India's domestic flights continue to carry the Indian Airlines' IC code, while international tickets use Air India's AI code. From later this month, the airline will use the AI code on all routes. "The switch-over date is 29 January and the trials have already started," said an Air India official, asking not to be named. Most departments are trying to meet the deadline internally, the official added.
"This is a big big exercise," said Air India's chief operating officer Gustav Baldauf. "After this switch over by January-end, it's only AI. You will not have two different tickets, two different airline counters. It's seamless travel for passengers." The IC code, with its established brand value, will not be given back to the International Air Transport Association. Air India will retain the air operators permit or the licence, Baldauf said. The switch-over to a single code should have been part of the very first stage of merger, said the Air India official quoted above.
10/01/11 IndiaInfoline.com
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