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Wednesday, Jan 19, 2005

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Meet on Air India, IA synergy today

Ashwini Phadnis

New Delhi , Jan. 18

IN an effort to bring about greater synergy between Indian Airlines (IA) and Air India (AI), a brain- storming session is to be held in the Ministry of Civil Aviation on Wednesday.

Official sources told Business Line that at the meeting several issues including how routes should be allocated and whether there should be complementarity or competition between the two State-owned airlines is to be discussed.

"The meeting will discuss a host of issues, including whether it is possible that AI and IA compete on some routes and complement each other on others. Why should it not be possible for IA to fly to destinations such as Geneva and Rome which used to be served by AI earlier," a senior Government official said.

The first brainstorming session tomorrow will take forward what the Cabinet approved on December 29. The Cabinet had approved a proposal and a course of action presented by the Ministry of Civil Aviation to strengthen AI and IA and for establishing improved operational synergy between them. The Government has already written to several countries including the UK, Thailand, Malaysia and Singapore, among others, that AI, IA, Jet Airways and Air Sahara are the designated airlines of India.

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