AI, Indian merger this year

New Delhi:The Indian government has taken its first step towards merging state-run carriers Indian and Air India as part of a wider strategy to take on nimble private players."The government has, in principle, decided to move ahead and merge the two airlines," Civil Aviation Minister Praful Patel told reporters Tuesday.
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Merger of AI, IA within 6 months: Patel
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"The ministry has initiated the process and in the final stages it will go to the cabinet and then the parliament for approval."Both international carrier Air India and domestic-focused Indian Airlines have ageing fleets compared to rivals such as Jet Airways Ltd. and Kingfisher Airlines Ltd.
There will be no job losses due to the merger, Patel added.The two carriers, beset with large workforces and strong unions, are also on an aircraft buying spree to augment their fleet and win back market share.
05/04/05 Reuters/CNN International

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