Archive for the ‘Air India’ Category

Cabinet gives green signal to AI-IA merger

March 2, 2007

The Union Cabinet has given the final nod on the mega-merger of the two national carriers, Air India and Indian. The merger would turn the new entity into a large airline, with a combined fleet of about 120 aircraft and a staff strength of 30,000, capable of taking global competition head-on. The public sector character of the merged airline would continue.

By 2010-11, when all the new aircraft ordered by the two carriers are inducted into the fleet, the merged entity’s employee-aircraft ratio would come down to about 200:1, comparable with any major global airline. While Air India has ordered 68 Boeing planes, Indian has finalised the acquisition of 43 Airbus aircraft.

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Public sector competition coming for low-cost airlines

March 2, 2007

Private sector low-cost domestic and international airlines could soon face competition from the newly merged Air India and Indian.

The Government is considering a proposal to create a low-cost airline arm of the proposed merged entity to operate regular flights not only within the country but also to international destinations.

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Cholamandalam wins bid for non-aviation cover to Air India

February 27, 2007

Private sector insurance company Cholamandalam MS General Insurance has won the mandate to provide non-aviation related insurance cover to Air India for 2007-08.

“The airline has managed to bag a 25 per cent reduction in the insurance pay out while there has been an increase in the cover being provided. The cover will be to the tune of about Rs 1,800 crore,” an official said without divulging exact details of what the airline payout would be.

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Govt eyes twin legal tracks for Air India, Indian merger

February 26, 2007

With the empowered Group of Ministers (EGoM) clearing the way for merger of Air-India (AI) and Indian, the government is considering two legal options to merge the state-owned carriers under the Companies Act of 1956.

The first option envisages the ministry of company affairs passing an order, under Sections 391-394 of the Companies Act, on an application filed by the board of directors of the two companies. This route would require the two carriers to obtain creditors’ approval — “majority” in number and 3/4th in terms of value.

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Post-merger, A-I, IA to hire new advisor

February 25, 2007

Post-merger, Air India and Indian Airlines will hire a change management consultant to enable the employee adapt with new working environment and reorient themselves to deliver better performance.

Air India Chairman and Managing Director Vasudevan Thulasidas said the combined entity will have a change management consultant which will enable employees to be IT-savvy.

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AI, IA will merge to gain muscle

February 25, 2007

The stage is set for the merger of Indian Airlines and Air India. An empowered group of ministers on Wednesday cleared the proposal to create a single national carrier — a move first mooted more than 20 years ago for providing muscle to the public-sector carriers to take on private and international airlines.

The merger, expected to be completed over the next three months, will create an entity with a fleet of around 120 aircraft. As new planes join the fleet, some existing ones are phased out and those on lease returned, the carrier will have over 125 new-generation aircraft by 2010.

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Decks cleared for Air India-Indian merger

February 25, 2007

With the empowered group of ministers (eGOM) approving the merger of Air India and Indian on Wednesday, the stage is set for creation of a mega airline company, ready to take on global giants like Singapore Airline and Emirates. With a fleet size of 112 aircraft and an extensive domestic as well as international network, the merged entity is also expected to step up competition for leading Indian carriers like Jet Airways.

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GE engines to save Air India $150 million

February 21, 2007

Air India will be saving $150 million over 15 years by mounting advanced General Electric (GE) engines GE90-115B on its 27 Boeing 777-300ERs aircraft. The Ecomagination range of engines allow better fuel efficiency and lower operating costs.

V Thulasidas, CMD, Air India said: “We are spending large amounts on aviation turbine fuel (ATF), which accounts for over 35 per cent of our operating costs. We have bought the best airframes and new generation engines to become one of the most efficient airline with lowest operating costs.”

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Air India hunting for pilots overseas

February 18, 2007

Air India, which is acquiring 68 Boeing aircraft for $11 billion, is on a major pilot-sourcing drive, as the state-run airline is enhancing existing services, apart from starting new ones.

The national flag carrier has already sourced 20 pilots from Belgrade-based Jat Airways Training Centre, and 18 more will join shortly.

Air India, which has a fleet of 48 aircraft, will require 100 pilots every year for the next seven years. According to S Venkat, executive director (finance ), the airline will have a fleet size of 59 by the year-end. “We have the largest fleet of 48 aircraft now, since inception. We have firmed up plans to enhance the services of our low-cost subsidiary, Air India Express, to 115 flights a week during summer against current 57 flights a week,” Venkat said.

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The Maharaja to don a new attire

February 15, 2007

Air India’s (AI) closely guarded secret is out. As part of a rejuvenation strategy chalked out by the ministry of civil aviation to revitalise the airline’s flagging image, AI has got a new livery for the new aircraft that is due to take delivery of from April. The order, for 68 aircraft, costing over $11-billion, was the largest aircraft order in Indian history. The symbolism could not be more clear: a new look for the national carrier to fit a nation about to start flying high.

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