Please note: This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source. Chat with us Please leave your feedback.
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It was converted into a Public Limited Company on July 29th and renamed as Air India, primarily operating on international routes. Air India was based out of Mumbai. Indian Airlines: The airline was set up on 1 August and operated on domestic routes. The airline was based out of New Delhi and had a pre-merger fleet of over 55 aircraft in
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A week ago, for the ninth time — the guidelines for sale of Air India were changed. The airline would be recording a loss in the tune of INR 8, crore this fiscal year. Following the merger, there have been committees, CMDs, Ministers and governments who have tried hard to get the airline to profitability or breakeven but have consistently failed. While the biggest problem is debt — which was accumulated due to the aircraft which were ordered from Boeing and Airbus — there is no denying the fact that both the airlines were in dire need of new aircraft to expand and keep competing with other airlines. The other problems which are often cited for taking so long to merge well are work culture, areas of operation, compensation, working conditions, entitlements and more.
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