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This is an archive article published on July 10, 2004

A-I, IA synergy flight faces turbulence

Heard about the grand plan to synergise operations between Indian Airlines and Air India? Well, it’s just not happening. To the extent ...

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Heard about the grand plan to synergise operations between Indian Airlines and Air India? Well, it’s just not happening. To the extent that the Civil Aviation Ministry has to now step in to arbitrate on fights between the two national carriers.

For example, Air India is said to have proposed a change in the formula used to honour frequent flier points by both carriers — regardless of whether the passenger earned the points on IA or AI. While differences over this mathematical equation could have been resolved through mutual consultations, the matter has now landed in the lap of the ministry, which is busy getting the facts right. Since the ministry is the nodal agency for the airlines it can resolve the matter through a tri-partite process.

Differences over specific marketing schemes have also been referred to the ministry.

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These squabbles are light years away from the grand plan to develop a synergy model between the two airlines. Less than a year ago, the two national carriers had signed an MoU, which was later submitted to a committee on route rationalisation set up by the ministry.

It was clearly stated in the MoU that as national carriers, Air India and Indian Airlines need to not only present but also be ‘‘seen to present a united front in market’’.

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