Decision on A-I, IA merger today

New Delhi: The final decision on the merger of the state owned national carriers, Air-India (A-I) and Indian Airlines (IA), is expected on Monday as the group of ministers (GoM) will study the recommendations of the merger consultant and take a decision on the approach to be followed for the merger.
The consultant, Accenture India Pvt Ltd, had recommended four roadmaps for the merger of the two carriers, the most optimum path being suggested was that the carriers be merged to form a new company. The other recommendations include, merging Indian Airlines into Air India or the vice versa, and forming of a third company that would only be an operational entity under which the two carriers will function as two subsidiaries.
The first option suggest that the business model should have a group chairman and managing director with special business units as profit centers to deal with cargo, ground handling, maintenance-repair-overhaul, low cost carriers and other allied activities. CEOs would be appointed for these business units and they will report to the group CMD.
27/11/06 Financial Express

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