The Hindu Business Line : Master integrator for Air India, Indian

With the merger of Air India and Indian taking off, the Government has designated the Joint Managing Director, Mr V. Trivedi, as the master integrator to carry the process forward.

The Joint Managing Director is heading an integration cell, which has been given the task of assisting the Chairman and Managing Director in driving the integration process as well as tracking and monitoring the benefits of synergy accruing to the new company. The cell also has two executive directors to assist Mr Trivedi in his work.

It has been estimated that the successful completion of the merger process could add around Rs 1,200 crore to the bottomline of the new entity through synergies between Air India and Indian.

Better revenues

An initial report prepared by the consultant Accenture had suggested that there could be a 3-4 per cent saving in costs and increase in revenue that could work out to around Rs 600 crore and progress up to Rs 1,200 crore over the next two-to-three-year period.

The cell would be coordinating the planning of integration activities that are currently driven by functional or strategic business unit heads. “All the working groups that have been set up are meeting with the integration cell to decide on strategies and time lines for achieving the goals before them.

“This has become important as the five Strategic Business Units (SBUs), including passenger airline, cargo, low-cost airline, maintenance, repair and overhaul, have been told that they would be responsible for not only their respective financial and operating performance but also their business plans,” official sources told Business Line.

The airline has also decided that in terms of human resources integration, a fair, balanced and phased approach would be followed.

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