Small is beautiful. And, having a small structure within a large one is even better. Seen in this light, the proposed merger of Air India and Indian in a decentralised fashion is a good model to adopt.
The merged corporate structure of the two public sector carriers is likely to go the Lufthansa way. The merged company will have separate subsidiaries for various operational functions. This will have different arms for full-service airline, low-cost airline, maintenance, repair & overhaul (MRO), ground handling and cargo among others. The broad plans for the new company entail having separate CEOs for each subsidiary that will function as independent profit centres.
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