AI-IA merger done in haste, says Parliamentary panel

The decision to merge national carriers Air India and Indian Airlines was taken in haste, without required consultation and homework, says the Parliamentary panel headed by Sitaram Yechury

A Parliamentary Committee on Thursday said that the decision to merge national carriers Air India and Indian Airlines was taken in haste, without required consultation and homework, reports PTI.

"As a result, the entire process has, in fact, been unduly delayed, if not derailed," the Parliamentary Standing Committee on Transport, Tourism and Culture has noted. The Committee looked into the merger of the two airlines and its impact on the domestic aviation industry.

"In the process, it has given rise to so many problems concerning financial, administrative and operational (issues), which could not be foreseen by the people who took this decision," the Committee said.

The Committee, headed by senior politician Sitaram Yechury, felt that these inherent contradictions of human resources and aircraft type existing within the National Aviation Company of India Ltd (NACIL), the entity formed after the merger, have become a major stumbling block in achieving the required economies of scale and increased leverage.

While Air India has a Boeing-based fleet, Indian Airlines primarily has Airbus jets and the engineers and operating crew of the two carriers are not equipped to service both aircraft types.

Both Air India and Indian Airlines had drawn up their own aircraft acquisition plans before the decision on the merger was taken, further impeding the process, the Committee noted.
 

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    COMMENTS

    Shadi Katyal

    1 decade ago

    It was well known that Indian Airline was loosing its shirt to Jet airways and Air India was already being rejected even by educed Indians. 70% of foreign traffic was in hands of all foreign carriers.
    The service and rudeness abound as both lines are PSU and India never utilized all the positions given to them as they lack new planes.
    Most of the experienced pilots left for either foreign airlines or Jet airlines.
    The commitee who promoted this joint venture has no experience and doubt if they can even read a business report or would know losses witten under different names.
    We have to face that India must get rid of these lines otherwise these elephants and Unions will continue to run it into losses.
    Air India has to rebuild it reputation and train staff to learn behavior. One is surprised that these people living in foreign9 countries are still very rude .

    M.R.Borkar

    1 decade ago

    It was not only a hasty but ill advsd one. It was trying to mix water n oil to produce milk. The bashing it is (Air India) is receiving from Print n E.media is hurting us -all oldtimers of AI. Has these guardians of National Interest ever checked how much money has gone down the drain in other PSUs. e.g take ITI how much financial support has been provided in the last 5 years to this PSU. I am not complaing about it. But then why hammer Air India? There is a lot that can be said and written. Just see what ex MD mr. Thulasidas is now saying in his publicopen n restricted communications.

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