Newstrack

Merger makeover: June may see new beginnings

EAW Staff - Mumbai

The marriage between Air India and Indian has finally been announced and now is the time to see what the future of the new family is. In all probabilities, the month of June will witness more news coming out from the Maharajah's office. Speaking on the sidelines of the recently held US-India aviation partnership summit, V Thulasidas, chairman and managing director, Air-India, said that soon the top three or four names of the merged entity’s head honchos will be announced. There is a possibility of the announcement as to which alliance would the new company be a part of. They are at present in talks with all the three global airline alliances.

He further added that as for Air-India there is definitely more requirement of aircraft from the present 68 and that a committee is being set up to analyse the need to procure new aircraft to meet future market demands.

It is also looking at additional aircraft for long haul routes, especially Mumbai-New York. At present 8 aircraft have been ordered to operate on the long-haul routes- the Boeing 777-200 LR, scheduled to commence operations in July 2007. Thulasidas added that demand for non-stop services in the future will increase, hence 8 aircraft ordered will be inadequate to service this sector.

Speaking about the IPO, Thulasidas said that this would be a possibility only once all the formalities are settled. He added that the IPO would bring in greater transparency in the working and functioning of the new company, as it would increase accountability. The vision for the merged entity is for it to function as a whole new business unit.