The merger of Air India and Indian have been on the cards for a while. One crappy airline is better than two seems to be the logic. I sincerely hope that will take the ‘India’ and ‘Indian’ out of their names.
According to the BBC, the two state-owned airlines are to merge in an effort to compete more effectively with private carriers. Air India and Indian will join forces by the start of April, ministers said – adding that the merger would not result in any job losses. The two airlines have the highest employees-to-plane ratio in the world. Officials said the deal would make the new entity more competitive, yielding annual savings of 5bn rupees ($113m).
Privately-owned rivals such as Jet Airways and Kingfisher Airlines have taken market share from the duo. They are much better and should be allowed to fly more international routes. The Indian government hopes that the combined firm will become one of the world’s top 20 airlines. “Everybody feels the process of merger is appropriate,” said Praful Patel, India’s civil aviation minister.
Why can’t they just sell these two airlines?