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Air India-Indian merger to take two years

 
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Akshay
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PostPosted: Mon Apr 30, 2007 12:17 pm    Post subject: Air India-Indian merger to take two years Reply with quote

Air India-Indian merger to take two years

The formalities of the merger between Air India and Indian will take nearly two years to be completed, says V Thulasidas, chairperson and managing director of Air India in Thiruvananthapuram.

"The legal issues would be completed in June but the actual integration of fleet, networking and employees could take at least two years," Thulasidas said on Sunday night.
He stressed that "there would be no retrenchment of employees" when the merger took place.
He added: "We faced a shortage of pilots, specially to operate the Boeing 737-800 aircraft. This has been solved by fresh recruitment from Serbia and Brazil.

Read the rest at HT
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karatecatman
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PostPosted: Mon Apr 30, 2007 12:21 pm    Post subject: Reply with quote

This statement is almost an admission of failure.


As this whole issue is linked to political issues, expect a rethink.

am saying this because the UPA is like a sinking stone. Expect general elections probably 6 to 8 months before time.

Expect a revival of the NDA or a third Front with outside Congress support.



Once again there will be this tamasha over the merger. Valuablke time willbe lost. Whiel IA and AI are still figuring things out, Jet will be miles ahead.
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the_380
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PostPosted: Mon Apr 30, 2007 1:32 pm    Post subject: Reply with quote

Good, finally some positive developement out here...
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sammyk
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PostPosted: Mon Apr 30, 2007 4:43 pm    Post subject: Reply with quote

karatecatman wrote:
This statement is almost an admission of failure.



Why, because of the two year timetable? It is not uncommon for post-merger integration to take this long.
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Nimish
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PostPosted: Mon Apr 30, 2007 4:51 pm    Post subject: Reply with quote

sammyk wrote:

Why, because of the two year timetable? It is not uncommon for post-merger integration to take this long.


Agreed. But in this case the expected gains from the merger should be realized at the start of the 2 year period, and not at the end of the 2 year period. Otherwise the whole exercise will end up bleeding the airlines for the 2 years it takes to become one.
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COUGAR
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PostPosted: Mon Apr 30, 2007 7:59 pm    Post subject: Reply with quote

It must be remembered that IC was created by merging 9 different airlines with 9 different systems.

The problem wasnt resolved overnight. IC operated the airlines as 9 separate profit centers or "lines" as they were called within IC. These lines were painstakingly integrated two at a time and th eprocess took over 7 years ending only at the time the Herons and DC4's were being retired.

One advantage that IC had then was that virtually the whole network was runnin on DC-3's (over 94 of them in service) with just the metro routes runnin on DC-4's (and later with Viscounts). Also the IC mgmt then (and now) is among the most competent and the work culture was also very positive with a high morale.

The same doesnt hold true today: the fleet of AI and IC are different, as are their systems. And to make matters worse, political considerations have taken precedence over competency: which explains how that no-good idiot Thulasidas has been given an extension so he can head the airline while the much more competent and professional Trivedi is being relegated to playing second fiddle!

If Pee Pee really had the interests of the airlines in mind, then Thulasidas would not have got the extension and Trivedi should have been made the CMD of the new airline. That hasnt happened 'cos Pee Pee thinks the interests of his friend Mr.keskar are dearer than the airline or the country. Evil or Very Mad
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the_380
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PostPosted: Mon Apr 30, 2007 8:17 pm    Post subject: Reply with quote

Well said Roy, however:
Fleet difference of AI and IC are not at all a concern. The engg units can be outsourced to Airbus and boeing respectively as per their plan. And as for the other ATRs and CRJs (if they come) there can be a seperate team of Mx for those small aircrafts ONLY.
But the biggest problem is political hinderance.
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Jaysit
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PostPosted: Mon Apr 30, 2007 9:02 pm    Post subject: Reply with quote

The difference between the post-nationalization merger of various private carriers to form IC and the AI-IC merger today is that one big factor that exists in virulent form today --- corruption.

Today corruption is the glue that holds the rot that is the GOI together. Virtually everyone is corrupt - the Netas, the Babus, the IAS officers, the peons, the Union leaders, the management. Back in 1948, it was a very different situation. Yes, the country was under the hold of Nehruvian-socialists with their misguided airy-fairy policies, but at least they had the interests of India in mind. But 60 years later, generations have been nourished at the well of corruption and have grown to be very good at sucking the country dry. And today, these people know that airlines are big money. So these people will fight any change, however minor, to the system that deprives them of their piece of the pie.

The reason this Thulasidas fool is saying 2 years is so that special interests within AI and IC reorganize themselves to avail of the new opportunities at corruption without depriving themselves of the systems they've created over the past 50-60 years.

Of course, this is necessary, because as Thulasidas himself says "Air India will become a WURRRRLD-KLAAAAAS AYARLINE - one oph the 5 besssht in the wurrrrld."
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aarbee
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PostPosted: Tue May 01, 2007 2:18 am    Post subject: Reply with quote

COUGAR wrote:
It must be remembered that IC was created by merging 9 different airlines with 9 different systems.

...

Interesting stuff.

Is there a history of IC / AI somewhere, esp. pre-nationalization. What airlines were there, fleet, routes, destinations, etc.

Thanks
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