Issue of September 2003  
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Rudy Open To Merger Of A-I And IA

Jyoti Koul - New Delhi

The newly appointed Union Minister for Civil Aviation, Rajiv Pratap Rudy is not averse to the idea of combining the two state-owned airlines, Air-India and Indian Airlines. According to him, the synergy between the two airlines can improve the financial status of the airlines. And the synergy is more appropriate because both the airlines are represented by the same managing director. Therefore, it does make sense to amalgamate the two. “Though the synergy is a good idea and can be a profitable proposition but such matters do not take place over night,” he commented.

But the minister believes that such an approach will take care of the ground handling system in a more efficient manner and the combined fleet strength would enable servicing international routes better.

Commenting on the deadweight Indian Airlines that incurred a loss of Rs 30 crore, Rudy said the ministry is planning to put up a committee to look into the financial health of the airline and bring it back in the black. However, that has not deterred the ministry from allocating Rs 60 crore on activities planned to commemorate 50 years of the airline.

The minister pointed out that in order to establish connectivity the ministry would have to ensure sustainable civil aviation. “We will ensure expansion of our network in the economically viable and socially essential routes,” he said.

Dovetailing with the ministry’s social commitment, the minister announced special fares for senior citizens and freedom fighters and free travel for Bharat Ratna awardees flying with Indian Airlines. The ministry has also taken an initiative for the facelifting and landscaping of the international airports in Delhi and Mumbai.

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