Friday, March 09, 2007

Merger of IA and AI


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Much awaited and touted megamerger of two state owned carriers Air India And Indian (formerly Indian Airlines) has received cabinet nod on 2nd of march. This maha merger will bringforth a globaly and domestically competitive edge to the airlines. Civil aviation minister said this will take another 4 month to practically exist the merger and he promised not to cut jobs.This merger will allow state to reap up benefit of 6 billion INR in next 4 years and It will be one of the biggest airlines of Asia with 122 carriers in his kitty. On the other hand workers and employees of AI and IA are apprehensive and worried about their future inspite of MR. Patel's promise.The Govt should try to allay this feeling in the days to come and the time should be utilised by reducing the lazyness of employees and boboodome.Given that seven new carriers have sprung up in the past four years in India's liberalised skies, once dominated by the state-run airlines, and another five have applied to take off, it will be interesting to see how this merger will reap up profits in the highly competitive indian aviation sector.
A 7.9/10

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