Air India, India Airlines closer to merger

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.