Mumbai-based Air-India operates mainly international services while Delhi-based Indian Airlines operates domestic services as well as short-and medium-haul international services.

So will the alliance revitalize the middle-aged Maharajah or just add to its girth? Air-India chairman Vasudevan Thulasidas says a merger will create a true “network” airlines operation and help the enlarged carrier compete better against rival privately-owned Indian airlines as well as foreign operators, which have been aggressively boosting services to the country. “We want to combine the two large air-lines of India into a large Asian airlines group, and we should be able to then compete on a more equitable ground,” says Thulasidas.

Thulasidas has a point. So far Air-India has been held back despite the fact that in the past three years it has been able to expand the six of the fleet and the operations. But things are set to change post-merger. For instance, the new airline will have something to the order of 125-150 aircraft. As the chairman likes to point out, “That will make the merged entity one of the largest airlines in Asia”.
With the consultant that will work out a road map for the merger to be finalized soon, Air-India and Indian are on course. They’ll have to leverage on the strengths of each other. That means leveraging on the fleet, on the engineering, and on their marketing to get stronger and bigger.