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Bucking the trend

The article “Why the Air-India-Indian Airlines merger needs to succeed’ (Business Line, July 2) was interesting. Even as re-branding and refurbishment exercises breathe fresh life into India’s aviation industry, most airlines have been facing rough weather for a long time.

The National Aviation Company of India Ltd (NACIL), formed after the merger of Air India and Indian Airlines, faces a daily deficit of over Rs 8 crore. Yet, it can draw appropriate lessons from the Air France-KLM merged entity, which, bucking the global trend, returned a net profit of $1.09 billion.

With a strong network and fleet, and backed by an agile management, Air France-KLM is competently catering to passenger needs through on-time flight services to Asia and North America. NACIL, on the contrary, is hobbled by a poor network and creaky fleet, and fast losing customer confidence. One hopes the strong measures it intends to put in place will bring back its customers and improve its income.

P. S. Saravana Durai e-mail

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