Air India, India Airlines closer to merger

5th Apr 2006

The Indian government has decided in principle to merge carriers Air India and Indian Airlines “with one company and one culture”, a process which would be completed this year.The merger proposal still has to be cleared by the Union Cabinet.

The move would turn the combined entity into a mega carrier with about 130 aircraft to take on major global carriers, especially those operating in the region.

Globally, mega mergers have taken place in the recent past, including KLM-Air France and Lufthansa-SwissAir.


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