AI, IA synergy drive hits airpocket

While Air India had agreed to the scheme last year, it apparently backed out citing financial reasons when IA passengers approached them. The matter had to be resolved after the ministry intervened.

Besides, the two airlines had also agreed in October last year to synergise their schedules in a bid to complement rather than compete with each other on the international sector.

Discussions had also taken place in the past on having a common agency for security-related matters in Delhi and Mumbai as this would also help in avoiding duplication of resources. This again has received little attention despite hectic discussions last year.

The two airlines had been consulting each other on apportioning airport ground handling contracts in a manner that they can present a common front to foreign airlines. So, regardless of who bagged the contract, AI would provide service to contracts at some stations and IA at others.

With the government now looking at opening up international routes for privates carriers there could be benefits of a merger between the two airlines.