Airliners-India.com

AKLDELNonstop · Member Joined: 19 Dec 2006 Posts: 1066 Location: Auckland

Thanks KCM will def love to know more.

Aiel, mate thats my dream livery for AI as well, the AIX type tails with palace windows. That would be awesome with an equivalent product inside and routes all over the world.

Sorry I have just had too much wine.

Cheers
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karatecatman · Guest

A UNI report (Dec. 30) says that Indian airlines employees who have been on a protest for the last few days over demands including wage hike, have threatened to strike work. Though no final decision on the strike was announced, the Air Corporation Employees’ Union (ACEU) said the delay by the Indian management in implementing the 1997 Demand Charter could lead to employees staying away from work, an ACEU statement has said. It said the responsibility for strike action would ‘‘totally lie with the management which was not showing any interest for settlement of the genuine demands’’, according to ACEU Regional Secretary S D Bhatt. Bhatt has added that the proposed merger with Air India was not in best interests of employees and would create more problems.
The employees, who have been wearing black-badges and observing hunger strike for the past few days, staged a lunch-hour demonstration at their office near the Delhi airport on Dec. 29.
The ACEU would continue sit-ins and hunger strikes near the airport entry gate on December 30 to January one, the statement said. The ACEU would chalk out its future course of action after January one.
Their demands include immediate settlement of the Demand Charter of 1997, higher wages, career progression and a pension scheme.
On wage revision and career progression, everything has been negotiated and settled, but the management is unnecessarily causing delay, the ACEU had said in a circular to its regional affiliates recently, says the report.

karatecatman · Guest

A number of TV channels (Dec. 30) say the merger issue will be delayed considerably.
The panel if Minsters has still to make a decision on the merger. There are alos legal complications.

the_380 · Posted: Sat Dec 30, 2006 6:02 pm Post subject:

HAWK21M · Posted: Sat Dec 30, 2006 8:45 pm Post subject:

Isn't the Cowlings Composite.
regds
MEL
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Nimish · Posted: Sun Dec 31, 2006 7:43 pm Post subject:

Akshay · Member Joined: 19 Dec 2006 Posts: 315 Location: Mumbai

NEW DELHI: The government is considering several routes like enacting a law or getting a court order or simply issuing an ordinance for merging the two state-owned carriers, Indian and Air-India, official sources said.

The merger being mooted on a decentralised model where the new company will float separate subsidiaries for various operational functions of the airline company.

This will include different subsidiaries for full service airline, low-cost airline, maintenance, repair & overhaul (MRO), ground handling and cargo among others. The fastest way to merge the two carriers would be the ordinance route as was done in 1953 when the Air Corporation Act was repealed to create the two public sector airlines, the sources said.

Sources said there could be some delay in the process but not an in-ordinate one as the statutory time-frame has to be met. The civil aviation ministry had set April 1 as the deadline for the merger, which the sources said, could be overshot. The two airlines, they said, would have to give notice to their creditors and lenders about the process going forward.

Link

karatecatman · Guest

GoI seems to realise that the HR problems are huge. If there is a strike in the merged organisation, then its good bye. Unions want a huge wage revision and rules to be drawn fresh.

The ACEU is getting tough. Today its members posted "Shame on you" greeting cards to the IA management, as part of the ongoing go-slow tactics. It wants wage revision arrears from late 1980s onwards! One report said 1974!!!!

The eGoM also includes the Defence Minister. A.K. Anthony is very Lefty in thinking and has adequate support from Pranab Mukherjee who is the eGoM chairpoerson. Mukherjee, it appears, can't understand the urgency of a merger, while Anthony feels the merger model is all wrong. Feels IA and AI can run on their own steam with the new fleet.

***

Somehow feel its gonna be a real let-down. May only be talk just to boost the IPO.
The news on the IPO is that it will be in the range of Rs. 10,000 crores.

karatecatman · Guest

All the TV channels are full of how the GoI may now issue an ordinance on the merger. But it's not gonna happen soon.

the_380 · Posted: Wed Jan 03, 2007 5:49 pm Post subject:

HAWK21M · Posted: Thu Jan 04, 2007 10:36 am Post subject:

Any Details/link on this "Project 787".
regds
MEL
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Think of the Brighter side !!!

Aiel · Member Joined: 19 Dec 2006 Posts: 927 Location: Bangalore

A-I, Indian merger on April 1
The merger of Air India and Indian is expected to take effect from April 1. Based on recommendations of Accenture, the consultants appointed to assist the government with the merger, steps have already been initiated to integrate the two state-owned carriers as well as their low-cost subsidiaries.

http://economictimes.indiatimes.com/News/News_By_Industry/Transportation/Airlines__Aviation/A-I_Indian_merger_on_April_1/articleshow/1115195.cms
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the_380 · Posted: Wed Jan 10, 2007 11:21 pm Post subject:

karatecatman · Guest

Govt. now seems to have acknowledged that there is resistance to the merger.
So, the solution is ......... to boost salaries.
Govt. has said that if in one company the wages for a person of the same designation is higher than in the other airline, the employee will be given a raise to match that level.
Wage bill will now be higher by almost 45%, though the Govt. has come up with a figure of 30%.
Also, while the management seems to be easier to tackle, the Govt. will not be in a hurry to merge the lower levels. Union guys are more powerful here, thats why!!!!

Net result seems to be that Govt is still yaking about the benefits of synergy, but it seems to be turning out to be a bit of a mess and 2 screwed up airlines that don;t know which direction to take.
Merger is beginning to get a bit scary.

Story is below:
http://tinyurl.com/yfnu78

the_380 · Posted: Mon Jan 15, 2007 6:33 pm Post subject:

karatecatman · Guest

News just in at 9 p.m on NDTV Profit is that IA and AI are to be merged by March-end. Praful PATEL SAYS THAT THE PROCESS WILL BE COMPLETED BY March 31. There will be no loss of jobs or salary cuts after the merger. The two airlines will gain 5 billion rupees ($113 million) annually after the merger, he said, while the cost of the merger would be about 1.5 billion rupees to 2 billion.

The implications of the wage bill and what the Govt plans to do are in the two posts above.

karatecatman · Guest

The formal release is here.

http://www.ndtvprofit.com/homepage/news.asp?id=283717

G-BYGB · Posted: Mon Jan 15, 2007 9:33 pm Post subject:

Once when the merger takes place will we see IC operating to Europe,Africa or will it be managed by AI only?
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karatecatman · Guest

The CPI (M) has finally spoken on the merger issue and released a statement, says a UNI report.
The CPI(M) said the merger of state-run Air India and Indian will have ‘‘serious consequences’’ for the employees of both the companies and has asked the UPA government to consult the workers before taking a decision.
‘‘There are differences in norms with regard to service conditions and seniority in both the organisations. The merger should not be done without taking the employees into confidence,’’ a senior party leader has said.
Meanwhile, the Empowered Group of Ministers on merger of the state-owned carriers has asked the Civil Aviation Ministry to hold talks with employees of the two airlines before taking the next step.
The CPI(M) was of the view that the government has been preparing the ground for the merger for some time and the change of name of domestic carrier Indian Airlines was an indicator in this direction.
After the EGOM meeting, Civil Aviation Minister Praful Patel said he has been asked to hold talks with the representatives of the employees unions of both the airlines and take their views to be put forward for consideration in the next meeting of the ministerial group, says the report.
Interesting days ahead, as the CPI (M) is gearing up for a battle.

karatecatman · Guest

This is the official version released today:

As mandated by the GoM for the merger of Air India and Indian in its second meeting held on 15th January, 2007, the Minister for Civil Aviation Shri Praful Patel ,met the representatives of the employees groups of both the public carriers here today. The Secretary, Ministry of Civil Aviation, Shri Ajay Prasad, and the CMDs of the respective airlines were also present on the occasion.

The Minister explained in detail the benefits that would accrue to the airlines post merger, and the collective wisdom behind the entire process. Detailed discussions were held on the HR issues wherein the employees were assured of their future prospects and there apprehensions were duly addressed.

It was explained to the employees that:

Both the airlines would be merged into a new entity .
An independent redressal mechanism would be set up consisting of representatives from the Ministry, Airlines, Department of Personnel and Department of Public Enterprises. This will ensure that the employees grievances, if any, are addressed expeditiously in a fare and credible manner.
The selection and appointment of personnel for various responsibilities in the merged entity would be done through a credible and transparent process based on fare and objective criteria.
The merger would involve no retrenchment, no cuts or losses in pay scale, perks or allowances..
Fitment of the employees into the new entity would be done in such a manner that their service conditions would further improve and they would continue to gain.
The overall benefit of the merger of the two airlines were also detailed to the employees which include:

enabling an integrated/domestic footprint which will significantly enhance customer propositions and allow easy entry into one of the three global alliances;

enabling optimal utilization of existing resources through improvement in load factors and yields on commonly serviced routes as well as deploy ‘freed up’ aircraft capacity on alternate routes;

providing an opportunity to fully leverage strong assets, capabilities and infrastructure;

increased parking bays and landing slots in an ‘infrastructure constrained’ environment;

increased potential to launch high growth and profitability businesses (Ground Handling Services; Maintenance, Repair & Overhaul, etc.);

enabling the merged entity to command better valuation potentially;

operating a combined fleet strength (~112) which will be the largest in India and comparable to any airlines in the Asia Region (Emirates (93), Singapore (118), Malaysian (110); ------ (which is RUBBISH, BECAUSE ALL THE AIRLINES MENTIONED ARE GOING TO EXPAND THEIR FLEETS SOON IN A HUGE WAY). Rolling Eyes

providing maximum flexibility to achieve financial and capital restructuring through revaluation of assets and cleaning up of financial books.

Thus the merged airline would be in a better position to serve and promote the airport hubs being developed at the metro cities by providing seamless domestic and international air connectivity over these hubs. At the end of the third year of merger, it is expected that the combined airliner would have the benefit of increased cost savings/profitability of Rs. 820 crore i.e. Rs. 410 crore from revenue synergies (primarily driven by network integration) and Rs. 410 crore from cost and capital synergies (driven by consolidation and better negotiating power) as against integration cost of Rs. 200 crore (HR, rebranding & IT), some of which will be one-time cost. Hence, the merger is expected to enhance the profitability by over Rs. 600 crore per annum (i.e. 4 per cent of current combined revenue)

The Minister also recalled that on 27th October 2006 the CMDs of both the airlines had sent individual letters to every employee explaining the details of what the merger of Indian and Air India would entail.

karatecatman · Guest

www.financialexpress.com/fe_full_story.php?content_id=151838

Story is on how HR issues are the main problem.

karatecatman · Guest

http://tinyurl.com/2m9rkx
Financial Express
Accenture speeds up A-I, IA merger

* Moves towards senior management integration * EGoM still to take final decision

karatecatman · Guest

Air-India, Indian merger only by mid-2007

The proposed merger of Air-India and Indian will overshoot the April deadline and is likely to be completed by mid-2007, according to the latest UNI report.

A committee of secretaries appointed by the Group of Ministers (GoM) to go into the proposal has favoured the merger of the two Government-owned airlines. "Although the GoM has also cleared the merger, the Union Government is yet to give the green signal," Chairman and Managing Director of Air-India V. Thulasidas told The Hindu and UNI in Thiruvananthapuram recently.

He said even if the mandatory clearance for the merger from the Cabinet came in the first week of February, it would need a minimum 16 weeks to complete the formalities. Accenture, the consultant that prepared the road map for the merger, had fixed that many weeks for completing the legal merger process after obtaining the Cabinet nod.

Mr. Thulasidas said there were no hitches for the merger. The employees and the unions of Air-India were in favour of the merger with Indian and had a "positive attitude."

The Union Civil Aviation Ministry authorities had informed him that employees of Indian were also in favour of the merger.

Better career opportunities for the personnel of the two airlines, cut in costs and being better equipped to face the competition are cited as the major benefits of the merger. The industry profits were declining. It was estimated that the proposed merger would add around Rs. 1,200 crore to the bottom line of the new entity through synergies between the two airlines.

The service of the consultant would be available for one year after the formal merger to ensure the integration of manpower, marketing and sales wings of the two airlines. The merged entity would be the largest airline in Asia.

Asked about the name of the airline after the proposed merger, Mr. Thulasidas said "we have been told not to worry about the name and logo now" and ponder it only after the formal merger, says the report.

HAWK21M · Posted: Thu Feb 01, 2007 11:16 am Post subject:

the_380 · Posted: Thu Feb 01, 2007 10:48 pm Post subject:

karatecatman · Guest

The Hindustan Times says that the AITUC is still apprehensive of the merger
The largest Left-affiliated trade union, the All India Trade Union Congress (AITUC), is yet to be convinced about the efficacy of the merger of Indian Airlines and Air India into one entity. On Tuesday, it asked the Union Civil Aviation Ministry for more time to look into the possible fallouts of the merger on the 30,000-odd workers in the two airlines.

Union Civil Aviation Minister, Praful Patel, paid an uncharacteristic visit to the AITUC headquarters on Canning Lane this afternoon to discuss the merger with the trade union's general secretary, Gurudas Das Gupta.

The meeting failed to reach a conclusion. Patel conveyed to Das Gupta that the CPIM-affiliated trade union Centre for Indian Trade Unions (CITU), the second largest Left union, had agreed to the merger. MK Pandhe, CITU president, agreed to the merger after being assured by Patel that the interests of the workers would be protected.

Patel mentioned to Das Gupta that the merger would give a much-needed access to new markets to both airlines. "Patel said that the merger would give Air India access to the domestic market and Indian Airlines to the foreign market," Das Gupta said, quoting Patel, says the HT report.

Das Gupta said that Patel also assured him that employees currently working in the two airlines would not be discriminated against. "There would be no retrenchment and parity of wages would be maintained. Parity in service years would also be protected," Patel told the AITUC leader, who is also a CPI Lok Sabha MP, quotes the HT report.

According to the Union Civil Aviation minister, the new entity that is created after the merger would earn a profit more than Rs 600 crores after a three-year-period.

At the end of the 20-minute meeting, however, Das Gupta told Patel that AITUC needs more time to look into the issues involved in the merger. No time frame was fixed. But we need more time. Patel was told that, Das Gupta said, says the HT report.

www.hindustantimes.com/news/181_1921184,00020016.htm

HAWK21M · Posted: Wed Feb 07, 2007 8:31 pm Post subject:

karatecatman · Guest

Merger may get one kick into the sky!!

Left ups the ante over A-I, IA merger as GoM meets today
AM Jigeesh

New Delhi, Feb 11 Ahead of the crucial group of ministers (GoM) meeting on Monday to decide the fate of the merger plan of Air India and Indian Airlines, Left parties have stepped up their campaign against the move. They have alleged that the merger would adversely affect the fortune of workers in both the companies. They have asked the government to instead come up with a concrete plan for the welfare of the workers in both the companies.

“After the merger, the government wants to break it into five subsidiary companies and a holding company. It will have a lot of ramifications,” said CPI(M) politburo member MK Pandhe. Pandhe, also the leader of CPI(M)’s trade union wing, the CITU, said the government is yet to answer many questions, including the common wages and seniority of the workers. “Working conditions in Air India and Indian Airlines are different. The government must make a concrete plan for the workers,” he asserted.

Under the holding company, the five subsidiaries would be Air India (international operation), Indian Airlines and Alliance Air (domestic operation), Air India Express (low cost international operation) and a cargo company. However, he conceded that the Union minister for civil aviation Praful Patel was in constant touch with the Left leaders and trade unions.

Pandhe gave a clear hint that something is cooking against the government’s merger plan, as trade unions of both the Air India and Indian Airlines are preparing to hold a joint seminar to discuss the government’s merger plans.
Interestingly, Patel, Pandhe and AITUC leader and Lok Sabha MP Gurudas Dasgupta have also been invited to attend the seminar. “In the seminar we would raise our protest against the move. I am told that Patel has also been welcomed to present his views,” Pandhe added.

http://www.financialexpress.com/fe_full_story.php?content_id=154488

karatecatman · Guest

Merger meeting has been postponed again. Reason is Minsters are busy with election work and Budget 2007 exercises.

Seems to be a whole lot of rubbish --- and the cat's out of the bag anyway.
There will be a holding company:

Air India for international operations
Indian for domestic/regional/international operations
Alliance for LCC domestic operations
Air India Express for LCC international flights
A cargo Division

the_380 · Posted: Tue Feb 13, 2007 7:45 pm Post subject: