No plans to merge Air India and Indian Airlines
Civil Aviation Minister Praful Patel has clarified that the central government currently has no plans to merge Air India and Indian Airlines into a single company. Their were rumors in the market about a possible merger of these state run airline companies to consolidate the market. He was responding to a question raised in the Indian parliament asking whether the government was considering a proposal to merge the two public sector carriers.
Praful Patel said that both the companies were operating in a highly competitive market and are competent enough to manage on their own. He also added that both Air India and Indian Airlines are constantly endeavoring to improve their services and remain competitive in the market.
Indian aviation industry has seen a massive boost in the last couple of years with many small operators entering the market with cheap budget air travel offerings. Air Deccan started it and now we have several other players shining brightly. Some of these new operators include: Go Air, IndiGo Airlines, Kingfisher Airlines, SpiceJet and others.
Incidentally, both these government operated airline companies are in the process of acquiring new planes and renovating their operations to attract more customers.