Can Merger Save India's State-Owned Airlines?

The merger of India’s state-owned airlines has combined Air India and Indian into a new government-controlled operation, National Aviation Company of India. The move took place as the two airlines, in their independent operations, failed to find success in one of the fastest-growing airline markets in the world. Despite attractive synergies on paper, there are doubts that the bureaucrat-dominated culture of its predecessors will be supplanted by a more entrepreneurial spirit that is need to experience business success. The Ministry of Civil Aviation retains tight control over all decisions, from adding new routes to the design of uniforms. After years of poor customer service and shrinking revenues, it has a long way to go to win back customers and restore routes such as long-haul operations to Rome, Geneva and Sydney, which tend to be more profitable. New entrants into the market also pose potential competition that could drive down margins and make it harder to expand. However, the government is pushing the merger and has announced plans for adding new planes and expanding service.

• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/00022543
• Authors:
  • Pandit, Shruti
• Publication Date: 2007-10

Language

• English

Media Info

• Media Type: Print
• Features: Photos;
• Pagination: pp 48-49, 52, 54
• Serial:
  • ATW: Air Transport World
  • Volume: 44
  • Issue Number: 10
  • Publisher: Penton Media
  • ISSN: 0002-2543

Subject/Index Terms

• TRT Terms: Labor relations; Mergers; Passenger service; Profitability
• Identifier Terms: Air India; Indian Airlines
• Geographic Terms: India
• Subject Areas: Aviation; Economics; Finance; Passenger Transportation;

Filing Info

• Accession Number: 01082251
• Record Type: Publication
• Source Agency: UC Berkeley Transportation Library
• Files: BTRIS, TRIS
• Created Date: Nov 30 2007 7:25AM