India completes merger
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Air India,as the merged carrier will be known, will have 112 Boeing and Airbus planes andwill be run by the National Aviation Co., the civil aviation ministry said inan email release, Bloomberg reported.
The merger will save Rp 8 billion (US$194 million) a year and willnot lead to any job losses among the 34,000 employees.
“The merger will pave the way for a strong national carrier,” CivilAviation Minister Praful Patel was quoted telling reporters
in New Delhi.”We would like Air Indiato add more aircraft than what have already been ordered.”
Air Indiawill induct 21 new planes this year, the ministry said. Air India along with budget unit Air India Express,ordered 68 planes from Boeing in January 2006 to expand flights into countriessuch as the U.S. vand Canada.
Indian Airlines, until now the third-biggest domestic carrier, ordered43 planes from Airbus to expand services and regain market share from legacyand low-fare rivals such as Deccan Aviation.
By 2011, Air Indiawill have as many as 135 planes, V. Thulasidas, who was named Chairman of themerged airline, had said earlier, the wire service said.
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