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Nov 2006

Talks on Indian Airlines-Air India merger

     New Delhi: A Group of Ministers (GoM) empowered to look into the merger of two state-owned carriers - Indian Airlines and Air India - held its first meeting late on Monday evening. Civil Aviation Minister Praful Patel told reporters after the meeting that the GoM was updated on the merger issue. The GoM led by External Affairs Minister Pranab Mukherjee met to fine-tune the merger plans of India's aviation giants. "This was the first meeting, and therefore, many issues are yet to be addressed. It was more to update the entire Group of Ministers as to what are the issues before them. It has also been decided that we will meet again," Patel said. At the meeting, it was decided to set up a small group of secretaries headed by Cabinet Secretary B K Chaturvedi to examine all issues and present their recommendations on the merger within two weeks. Consolidation in the nascent airline industry, which saw four airlines launched last year, appears inevitable as more carriers appear on the horizon. Cut-rate pricing is also putting pressure on profit margins of all carriers.
-Nov 28, 2006