Airlines India, Indian Airlines

The civil aviation ministry is likely to move a Cabinet note on the proposed merger of public sector carriers Air-India and Indian Airlines in November after it receives a report from consultancy firm Accenture.
“There are no impediments in the process. Everything is going on as planned,” civil aviation minister Praful Patel said.

He said the consultancy firm, appointed to prepare a roadmap for the merger of the two carriers, would submit its report by October.

“We hope the Cabinet note on the matter should be ready in November after we receive this report,” Patel said in response to questions, adding that the proposed merger process was moving on track and would be completed as planned within the current financial year.

Official sources said there were some key areas like human resources, operations and infrastructure, which needed to be looked into in greater detail, before the proposal could be finalised. A decision on the future of their subsidiaries, Alliance Air and Air-India Express, would also have to be taken, the sources said.

The merger of Air-India and Indian Airlines will create a mega carrier with about 130 aircraft.

An Alliance Air jet with 107 people on board made an emergency landing at the N S C Bose international airport here on Sunday, officials said.

The pilot of the aircraft, which was on its way from Silchar to Kolkata, suspected some technical problem and requested the air traffic control at the airport to arrange for an immediate landing.

The Airports Authority of India (AAI) made all arrangements to cope with any emergency. The fire brigade and ambulances were kept ready for any eventuality but the aircraft landed safely and all its passengers were safe, the officials said.

The aircraft was examined by engineers, they said.

India’s state-owned carriers, Air India and Indian, have appointed a consortium led by Accenture, the US-based global management consulting company, to oversee the merger of India’s two flag carriers, an aviation source said.

A high-level panel took the decision on July 24 in New Delhi. “Both the boards of directors of Air India and Indian have approved the appointment, which will soon be made public,” the source told Gulf News in Dubai yesterday. Both carriers will make a formal announcement soon, the source said.

The mandate for merger, which would potentially create a global scale airline, would be one of the largest mandates in recent times. The value of the combined entity is estimated to be at around $5 billion to $7 billion. The new entity will have a workforce of about 35,000 employees.

The consortium, which also include Ambit Corporate Finance, won the mandate defeating rival bids submitted by ICICI Securities with financial institutions Deloitte Touche Tohmatsu, NM Rothschild and law firm MV Kini & Co, Morgan Stanley, Amarchand Mangaldas and AT Kearney and the Centre for Asia-Pacific Aviation.

The consultant will now chalk out a roadmap for the operational merger between the two carriers. The mandate also includes an advisory for capital-raising, preparation of business plans, strategic inputs and post integration issues. Eight merchant banking firms were initially in the race, three of which were shortlisted.

The merger is expected to be completed by early next year, which will pave the way for an initial public offering, the source said.

Air India had specified that the consultant should have a minimum share capital of Rs500 million and turnover of Rs1 billion.

KOLKATA: An Alliance Air flight from Kolkata to Silchar returned to the airport soon after take off due to a false fire alarm on Saturday.

The ATR-42 plane of Alliance Air, a subsidiary of the Indian airlines, took off at 10.30 am but had to return when a fire indication was noticed, a spokesman of the Indian said.

The aircraft landed at the NSC Bose International Airport with 37 passengers at 10.40 am amidst the emergency drill.

However, after check up, the alarm was found to be false, the spokesman said adding all the passengers were safe.

The incident delayed the flight by about 2.30 hours.

From seats and baggage to food and entertainment, airlines are charging for more ‘extras’ than ever before.

Cheapflights.co.uk today launched a new ‘hidden extras’ consumer resource on its web site. This convenient tips page helps consumers by disclosing how much airlines charge travellers for items such as food, entertainment, seat selection and baggage. Cheapflights.co.uk users can now ‘click’ the relevant tab on its “Travel Tips” sections to access tip sheets for over twenty top airlines. This innovation arrives the same week that EU transport commissioner Jacques Barrot unveiled new European Union proposals designed to enable passengers to compare like-for-like prices by forcing airlines to include all charges - including airport, wheelchair, baggage fees and fuel surcharges - in the headline price.

The new tab can be accessed by navigating in from the Cheapflights.co.uk home page “travel tips” section or entering cheapflights.co.uk/travel-tips/airline-extras.html on an internet browser.

Cheapflights.co.uk, pioneered independent online travel price comparison and travel deals publishing in 1996 and is now the UK’s leading international internet travel deal search company and a major sector player in the US. Apart from publishing over a million deals for comparison from hundreds of travel companies each day, the Company has always included useful additional travel information for consumers to access via its award-winning travel sites.

CEO David Soskin said: “Cheapflights believes that consumers deserve the opportunity to compare like-for-like when purchasing airline tickets. This airline extras sheet is another example of Cheapflights giving consumers the tools to make informed decisions. Low-cost may not be so low once you add charges for extra baggage, entertainment and a sandwich onto the ticket price, but purchasers should be able to make their selections based on their priorities. After all, a business traveller with a single briefcase requires different services than a family of four with two hungry children.”

He added: “Barrot’s decision to demystify airline ticket pricing is a step in the right direction. We’re glad to see that consumer demands are being met – and Cheapflights is determined to lead the way to make air travel less confusing and more affordable.”