The Hindu Business Line : Group of Ministers set up for AI merger

The Prime Minister, Dr Manmohan Singh, has constituted a Group of Ministers (GoM) to look into the merger of Indian and Air India, the Minister for Civil Aviation, Mr Praful Patel, said here on Thursday.

"We would like to see the merger get underway by the end of this financial year," the Minister said at a function to mark the induction of the first purchased aircraft by Indian after a gap of more than 12 years.

The nine-member GoM includes the Ministers for Defence, Finance, Company Affairs, Civil Aviation, Public Enterprise and Personnel apart from the Deputy Chairman of the Planning Commission.

While allaying fears about any job loss or retrenchment due to the proposed merger of the two airlines, the Minister for Civil Aviation also cautioned them on being complacent about the state of affairs there.

Market Share

"Personally, I have not been very happy with the performance of the airline in recent times. We would want the airlines to raise their standards and retain the position that they enjoyed earlier. The Government will, however, not be a mute spectator and allow them to go adrift. It would take corrective measures when required. The airlines have to come up to the expectations of the Government and the people," Mr Patel said.

During the first six months of the current year, the market share of Indian slipped to about 23 per cent. Similarly, Air India has also seen its market share dip.

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