The ministry of civil aviation is planning to constitute a new panel with adjudicatory powers to ease out problems arising in the merger of erstwhile Air India and Indian.
Though the merger process was begun three years back, only about 20-25% of it has been achieved till now. Sources confirmed on Wednesday that a panel, comprising eminent personalities from “outside”, is being constituted to “facilitate integration of the two airlines. This way, the Air India management would not have to deal with integration issues directly and some credible outsiders can help this process”.
Though no names have been discussed as yet, the panel is expected to comprise two or three widely respected personalities.
Pointing towards the complete lack of cultural integration between employees of the two carriers, sources said that such a panel would provide “neutrality” to the entire process of integrating the two airlines and provide an objective framework within which to complete the merger.
This panel is being formed just after a persistent buzz — which has been categorically denied by the ministry — of the possibility of undoing the merger to pare losses and improve the overall financial health of the national carrier.
“Undoing the merger is neither practical nor will it reduce losses. In fact, if any such thing were to be done, losses will only mount,” the sources told DNA Money.
A Parliamentary Standing Committee headed by Sitaram Yechury has already advocated that the two airlines (erstwhile Air India and Indian) operate as separate entities within a single umbrella company.
That the merger of the erstwhile international and domestic carriers has not really been a success is evident from the lack of integrated ticketing for the domestic and international legs of AI, separate codes for the two services, duplicate manpower at various middle and junior levels and even overlapping of services on certain sectors.
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