Air India and Indian Airlines merger will create shareholder value

The Indian Government will succeed in creating an internationally competitive carrier by merging Air India and Indian Airlines if it can overcome the challenges that lie ahead, according to Mr Andrew Miller, the Chief Executive of the Centre for Asia Pacific Aviation.
Mr Miller, a former Chief Operating Officer of Air New Zealand and the architect of several successful airline turnaround projects, told the Centre’s Middle East & Indian Subcontinent Aviation & Tourism Investor Summit in Mumbai that the Government is in a position to capitalise on previous experience with airline mergers in the UK, Australia and New Zealand.
“The ideal outcome for any merger is that revenue is maximised through built-in synergies and costs lowered through economies of scale,” Mr Miller says. “However, many airlines don’t manage to achieve this. The Indian Government’s advantage is that it can learn from previous mistakes in other countries.”
28/04/06 Travel Daily News International, Greece

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