AI-Indian merger: New business model mooted

New Delhi: As the process to merge Air-India and Indian gathers momentum, a business model that is understood to have found acceptance among officials has recommended creation of the post of a group CMD for the merged entity with special business units (SBUs) headed by separate CEOs.
These SBUs or divisions, to be run as independent profit-centres, are proposed to be set up in the areas of integrated passenger service covering both domestic and international operations, cargo business, ground handling, MRO (maintenance, repair and overhaul), low-cost carriers and other allied activities, official sources said.
This proposal forms the basis of a note for the union cabinet, which has to give its final stamp of approval before the merger process can go ahead. The cabinet would act on the recommendations of a group of ministers, which is meeting here on November 13.
The focus of these SBUs would be to maximise revenue in the single operating company by joint sales strategy, common distribution network and outsourcing plans.
30/10/06 Zee News

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