Airliners-India.com

karatecatman · Guest

News just in. Rolling Eyes

Wed. Feb. 21, 11 pm.

GoM approves Air India-Indian merger

The Group of Ministers (GoM) has just approved the proposal to merge Air India and Indian into a new company, says CNN-IBN, quoting a PTI report

The merger process, which will create one of the biggest airlines not just in India but also in Asia, would be completed within two to three months after the Cabinet approval.

The matter would be shortly brought before the Cabinet and "we intend to complete the process by March 31", PTI quoted Civil Aviation Minister Praful Patel as saying.

He also assured the employees, totaling about 33,000 in the two carriers, that their interests would be taken care of. Patel added that the transition would take place in a phased manner and would be spread over one to two years.

The merged entity would have a fleet of over 120 aircraft by 2010-11. The orders — amounting to $7 billion — for the merged entity's aircraft have already cleared by the Government.

"We wish to make it very clear that the merged entity will have a PSU character and there will be no dilution," PTI quoted Civil Aviation Secretary Ashok Chawla as saying.

***

The nine-member GoM included the ministers for defence, finance, company affairs, civil aviation, public enterprise and personnel apart from the deputy chairman of the planning commission.

The issue will now go to the Union cabinet. Mr. Patel cautioned that the merger would not be an overnight affair, as the transition period envisaged a spread of 18-24 months. He mentioned that the finance ministry had broadly endorsed the issues relating to stamp duty, registration and taxes.

***
Initial reactions are that the Left is not happy. So expect fireworks.

***
Unofficial reactions are that this new company will just be a holding company with five divisions.
Air India
Indian
Alliance
Air India Express
A cargo airline

mrniji · Member Joined: 13 Feb 2007 Posts: 55 Location: FRA

Jaysit · Member Joined: 19 Dec 2006 Posts: 4346

What isn't the left in India unhappy over?

Oh, yes, when their kids get into an American university.

High marks to PP for carrying this off, but unless the labor laws are changed, having 33,000 employees for an airline this size is self-defeating. Especially when half of them are useless or are patronage hires in the first place. The new entity would be better off giving all the useless ones an early retirement with a golden parachute.

aarbee · Member Joined: 19 Dec 2006 Posts: 328 Location: WAS/AMD

Nimish · Posted: Thu Feb 22, 2007 12:10 pm Post subject:

Kudos to PP for pushing this through, now for the next step (cabinet approval) and for the actual merger to take place!

And now that this is moving forward, hopefully AI/IC employees will stop bitching about differences in culture/HR issues etc. and start planning to do something about those differences.

karatecatman · Guest

First noises already.
AI pilots have sent a "note" to say they should get first pref when flying the traditional AI routes.

karatecatman · Guest

Other interesting articles in Times of INdia:

Merger idea flies back 20 years
http://tinyurl.com/2qazzu

Finally, an airline with 100-plus fleet

http://tinyurl.com/yt8glt
Quote:
First the bad news: Even after the merger, the Air India-Indian Airlines combined aircraft fleet strength would be considered small by international standards as the merged airline may not even feature in the top 20 airlines in terms of fleet size.

By 2011, much against the profit-making mantras touted by aviation pundits the merged entity would have an amazingly diverse fleet of aircraft, complete with Boeing 747-400s, Boeing 777-200LRs, Boeing 787 Dreamliners, A320s, A319s and A321s - enough representation, one can say, from both the warring aircraft families.

...
"But as both these airlines have a seizable number of ageing aircraft, the next few years, will also see a lot of phasing out happening,"says a top Air India official. For instance: By 2011, after all the new aircraft join in, Air India's fleet strength would still be only 75.

"Only six Boeing 747-400 out of the present fleet of 48 aircraft will be retained. The rest will be phased out. Some A310s will be converted into freighters,"he adds.

Even if Indian Airlines has, say 80 aircraft by 2011, then the combined fleet of the merged entity would add up to about 150 aircraft. "That would be enough to bring us close to All Nippon Airways which is the 20th large airline in terms of fleet size with 156 aircraft,"he adds.

Aviation analysts say managing diverse fleet of aircraft would be one of the challenges of the merger. "There is hardly any scope for merger in the engineering department of these two airlines. No spare parts sharing, no transferring engineers, no combined overhaul workshops etc,"says an airline official.

"It's important a factor considering the present-day shortage of spare parts,"he adds. Ditto with cockpit crew sharing.

"Indian Airlines does not have single foreign pilot, while Air India Express has as much as 70 foreign pilots. Both these airlines are large operators of short capacity short range (SCSR) aircraft. While Indian operates A320s, AI Express operates Boeing 737s and the cockpit crew just cannot be interchanged,"he adds.

Maharaja may continue as mascot
http://tinyurl.com/29h5sb
Quote:
While the new brand name after the merger of Indian and Air Indiais yet to be finalised, civil aviation minister Praful Patel said, the Maharaja could remain the mascot for the merged airline.

The airline's full-cost domestic and international flights would get a similar look in the coming years.

....
Those tracking the sector warned that the airline could face problems with its dissimilar fleets - Air India has ordered Boeing and Indian Airlines is acquiring Airbus planes.

Besides, with the government promising no cut in salaries while also protecting the seniority of employees who work for two organisations with different work cultures, analysts see a potential air pocket.

The move necessitated by the growing competition from private carriers ... will result in six units under the merged entity including a low-cost carrier. The others include cargo, ground handling, engineering, jet shop and MRO.

the_380 · Posted: Thu Feb 22, 2007 2:45 pm Post subject:

Shit!!!!!!!
Awaiting 31st March when i will mourn the 'death' of the two airlines
_________________
http://www.myspace.com/avsatsworld
A Walt Disney and 20th Century Fox Audio Producer!!! Very Happy

karatecatman · Guest

380, Join you in that. Sad for IA.

Praful Patel NOW SAYS HE WATS TO SEE an airline with the scale and efficiency of operations like Lufthansa and with the inflight service of Singapore Airlines!!!

Height of irony. Considering that when SQ was started, its top management were sent to Bomaby to learn the ropes at Air India!!!

avbuff · Member Joined: 22 Dec 2006 Posts: 5031

the_380 · Posted: Thu Feb 22, 2007 3:16 pm Post subject:

karatecatman · Guest

Trouble could be expected for the merger according to CNN-IBN.
The merger may have been cleared for take-off, but whether the combined entity would continue to enjoy monopoly over the lucrative Middle-East sector has become a matter of scrutiny by the country’s Competition Commission.
The Commission, which is at present playing more of an advisory role pending passage of an amendment bill granting it more powers, could force open this market for private players, sources have told CNN-IBN.
The merger of Indian and Air India might require intervention of the Competition Commission, which is planning to take up the issue with the Ministry of Civil Aviation, a source said.
When private players were allowed to start operations on the international routes, the government did not open the money making Middle East sector for the two airlines it owns.
As per the Competition Act, no merger should create entry barriers for competition. The Competition Commission has taken a view that the present the limited competition between the Indian and Air India would cease after their merger.
This situation is not allowed in the law, the source said.
The Competition Act, which had run in to problem because of litigation, is likely to amended in the coming session as the Standing Committee has already cleared the amendments.
This would happen at the same time the merger takes place.

The private player s are expected to make a huge issue out of this, sources have said.

aarbee · Member Joined: 19 Dec 2006 Posts: 328 Location: WAS/AMD

aarbee · Member Joined: 19 Dec 2006 Posts: 328 Location: WAS/AMD

the_380 · Posted: Fri Feb 23, 2007 1:43 am Post subject:

Jaysit · Member Joined: 19 Dec 2006 Posts: 4346

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

COUGAR · Member Joined: 01 Jan 2007 Posts: 986 Location: Bangalore

I see the obsession with Left continues! Personally I dont think the Left can do anything about it: they are not a factor in Govt decisions!

As for Jet and KF being the SQ: no doubt they are getting there and al lth ebest to them for that. The passenger is going to be the ultimate beneficiary.

Ofcourse 9W has the advantage in that the Minister of Civil Aviation is on their side and looks after their interests.
_________________
http://www.cougar-rides.com
<B>Live to Ride - Ride to Live</B>

--

avbuff · Member Joined: 22 Dec 2006 Posts: 5031

well i think 9W and IT shud very soon be counted as some of the best airlines in the world . thye aure are heading the right direction

karatecatman · Guest

Obsession with the Left has to continue and be tolerated.
The Left clearly called the shots in the latest political drama and now that they have tasted success they intend acting more smart ... ala Prakash Karat and the Third Front dream.

***
Interesting that the AI/IA merger news has made to the website of the
Arab Air Carriers Organisation.

http://www.aaco.org/pubnews.asp?id=1276&lang=1

Its members are:
EgyptAir
Yemen Airways
Saudi Arabian Airlines
Royal Jordanian
Middle East Airlines
Libyan Airways
Iraqi Airways
Emirates
Syrian Arab Airlines
Oman Air
Sudan Airways
Qatar Airways
Tunis Air
Palestinian Airways
Gulf Air
Jordan Aviation
TransMediterranean Airways
Afriqyah Airways
Air Algerie
Etihad Airways
Kuwait Airways
Air Arabia
Royal Air Maroc

Jaysit · Member Joined: 19 Dec 2006 Posts: 4346

karatecatman · Guest

IT is gonna bleed after the UB Group’s takeover of the Glasgow-based Whyte & Mackay, manufacturers of Scotch whisky. It was for £550 million (Rs 4,675 crore). Though Malllya may add W&M Scotch whisky, Vladivar vodka and Jura single-malt whisky to its Kingfisher lager, Bagpiper and McDowell’s No.1 whiskies, industry says funds will come in from the airline business. Mallya may now look to jumping out of the airline business.

karatecatman · Guest

The latest is that for the "new company" (AI/IA/CD/AIX), the turnover of the merged entity is projected to exceed Rs15,000 crore ($3.3 billion).

How this figure has been arrived at it is astounding as the internal company affairs notes prepared in Air India and IA say that AI will be in a sea of red ink for the next 10-12 years on account of its heavy debt repayment schedule, while IA is expected to be in the same position for the next 5 years.

the_380 · Posted: Fri Feb 23, 2007 6:05 pm Post subject:

One thing i can't understand is why merge? I mean will both the airlines remove their aunties and get younger and better crews in their place??? Will both airlines start operating on-time flights??? Will the new airline actually be capable even to withstand competition by 9W? Forget LH/SQ and all that crap.
Isn't it bullshit if you're just merging so that you get a fleet of 100+ aircrafts and stop both the airlines competiting each other?
As far as fleet is concerned, SQ was termed as once of the best airlines much much before its fleet crossed 100 andabout AI and IC competiting on routes, can't the govt just set up a panel (as they always do) and decide with the boards of the two airlines and equally distribute routes so that they don't compete each other and pay compensations also if necessary?????
_________________
http://www.myspace.com/avsatsworld
A Walt Disney and 20th Century Fox Audio Producer!!! Very Happy

Nimish · Posted: Fri Feb 23, 2007 6:12 pm Post subject:

COUGAR · Member Joined: 01 Jan 2007 Posts: 986 Location: Bangalore

Good points A380!

The merger brings no benefit to either airline or indeed to teh govt. The Minister is once again pushing forward a plan that directly opens the door for pvt carriers to operate to the Gulf and other routes currently operated by AI and IC. Already there is talk in this direction!

Right now with AI and IC competing with 9W on routes like SIN, 9W is finiding it difficult to sustain itself and its yields are being hit. With the merger, the combined AI/IC will operate fewer flights directly benefitting 9W in terms of yields.
_________________
http://www.cougar-rides.com
<B>Live to Ride - Ride to Live</B>

--

the_380 · Posted: Fri Feb 23, 2007 7:15 pm Post subject:

Nimish · Posted: Fri Feb 23, 2007 7:16 pm Post subject:

the_380 · Posted: Fri Feb 23, 2007 7:19 pm Post subject:

Nimish · Posted: Fri Feb 23, 2007 8:43 pm Post subject:

Jaysit · Member Joined: 19 Dec 2006 Posts: 4346

Nimish · Posted: Fri Feb 23, 2007 10:10 pm Post subject:

Jaysit · Member Joined: 19 Dec 2006 Posts: 4346

Of course its a conspiracy!!

After all flying 3 daily flights on a sector at 40% load factors (after heavy discounting) is soooooo much better for the Indian taxpayer than flying 2 daily flights at 80% load factors. I mean it makes sooooo much more sense to have an AI and IC flight leaving half empty within a half hour of each other than to combine that flight.

Good Lord.

aarbee · Member Joined: 19 Dec 2006 Posts: 328 Location: WAS/AMD

aarbee · Member Joined: 19 Dec 2006 Posts: 328 Location: WAS/AMD

aarbee · Member Joined: 19 Dec 2006 Posts: 328 Location: WAS/AMD

Jaysit · Member Joined: 19 Dec 2006 Posts: 4346

VABBy · Member Joined: 19 Dec 2006 Posts: 823 Location: DEL

COUGAR · Member Joined: 01 Jan 2007 Posts: 986 Location: Bangalore

the_380 · Posted: Sat Feb 24, 2007 12:57 pm Post subject: