Welcome To Merger

Presentation

By:NasirSharif

Habeeb

Merge BetweenAir

India& Indian Airlines

The airline was set up under the Air Corporations Act, 1953 with an initial capital of   32 million and started operations on 1 August 1953.

Indian Airlines was the second largest airline in India after Jet Airways while Air Sahara controlled 17% of the Indian aviation industry.

• Air India was founded by J.R.D TATA in July 1932 as Tata Airlines a division of Tata Sons Ltd.

• Air India is the flag carrier Airline of India. It is part of the Gove.

• Air India has the fourth largest share in India's domestic air travel market, behind Jet Air Ways, Kingfisher and Indigo.

Merged

The Government of India, on 1 March 2007, approved the merger of Air India and Indian Airlines.

Formed As

Aviation Company of India Limited (NACIL)

• The Authorized and Paid-Up Share Capital of the merged entity will be

1500,05,00,000/- and  145,00,00,000/-, respectively

• The new entity will be known as “Air India” while “Maharaja” will be retained as its mascot

• The logo of the new airline:-

Current Status AFTER MERGER

Pre-Merger Estimate• The Merger of the Company

would result a profit of 1000 Cr in 1st year Itself

Post Merger Fact• Losses Escalates From• Rs 1200 Cr. 1st year

• Rs 2600 Cr. 2nd year

• Rs 5500 Cr. 3rd year

Pre and Post-merger profit and Loss of Air India

Criticisms

Approval of the Government for the merger of Air India with

erstwhile Indian Airlines, was "ill-timed

Karan SingMinister of Tourism and Civil Aviation in 1971

Air India-Indian Airlines merger a very bad idea

IS Maharaja Healthy now?

Grand plans to resurrect the ailing Maharaja

We will bring the airline back to life," said civil aviation minister Vayalar Ravi

• The government plans to take the loan burden of 20,185 crore that the carrier had borrowed for purchase of 111 aircraft (68 Boeings and 43 Airbus)

The process of entire merger which escalate the negligence of the Government as well as Civil Aviation which makes people to suspect about the merger process after civil aviation grant a license to private air line companies where air India was really earning marginal profit.

• Air India committed 35000 Crore for buying 68 air craft at a time its annual turnover was just 7000 Crore.

THANK YOU