News: Air India, Indian may merge to consolidate

(PTI 03/09/2006) Varga (Goa) - Air India is looking ahead for its merger with Indian to make the entire group the “largest airlines in Asia”, Air India’s Chairman and Managing Direct or (CMD) Vasudevan Thulsidas said.

“We look ahead for this merger, which would further strengthen our market position,” he said. Thulsidas was addressing a conference on ‘logistics' organised by Goa Institute of Management in south Goa.

“Open sky policies have brought in challenges and also opportunities to the airlines companies. All airlines face tough competition,”, he said. Air India intends to further consolidate their position in the world market vis-a-vis open sky policy by having global alliances with other players, the CMD said.

“On cargo sector Indian government adopted open sky policy in 1990 while for passengers its coming now. Technically, India has open sky policy only with us while with the rest, it’s a liberal agreement,” Thulasidas explained.

Pointing out that Air India is being ‘rebuilt’, he said the airlines will add more muscles with induction of 68 brand new state-of-the-art aircraft. “They will start coming from November and will keep on adding for next three to four years,” the Air India CMD said. He said the new fleet would be the best in the world and at par with any global airlines.