AI-Indian to emerge formally as one airline by mid-July

New Delhi, May 10 (UNI) The newly-merged entity of Air India (AI) and Indian along with their low-fare subsidiaries will emerge formally by July 15 under one brand, civil aviation minister Praful Patel said today.

The government has registered a new company called National Aviation Company Ltd to amalgamate AI, Indian and their low-fare subsidiaries AI Express and Alliance Air.

Mr Patel said the new entity branded as Air India will be headed by a chairman-cum-managing director. The company will be divided into five divisions -- for repairing engines, maintenance and repair section, cargo division, ground handling, full service carrier, and a low cost division each headed by a CEO.

Route rationalisation between the two airlines has already started on the India-Kuwait sector. The merger will result in annual cost savings of Rs 80 crore per route, said Mr Patel while talking to reporters.

With the merger, the government plans to take on international and more nimble-footed domestic carriers with a fleet of spanking new aircraft. Indian last year ordered 43 new Airbus aircraft while AI signed up for 68 Boeing planes.

The new airline having about 112 aircraft with both international and domestic footprint will set fresh benchmarks for efficiency and reliability as an aviation giant, said the minister.

In reply to another question, the minister said AI should also establish a hub in Europe. Jet Airways recently announced the creation of its European hub in Brussels (in collaboration with Brussels Airlines) which will provide increased connectivity between India and Europe, Africa and North America.

''These are good times for Indian aviation and carriers should establish a strong presence abroad,'' he said.

UNI