While there’s still a while left for Air India Express and AirAsia India to merge officially, the Tata Group is keen to make one of the best use of the resources of each carriers for more economical operations. But for that to occur, the authorities could have to waive certain rules regarding the merger process.
Keen on cross-utilization
The Tata Group is keen to fast-track the utilization of resources of each Air India Express and AirAsia India for higher operations and economic gains. There’s still a while before a merger is officially inked, however the Tatas have approached India’s aviation regulator, the DGCA, for a waiver of merger laws.
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And while it’s only a matter of time before all approvals are available, each airlines still cannot conduct business as a single airline until all the things is finalized. But will the Tatas receive a waiver? A government official told ET,
The Tata Group, nonetheless, is ready for any final result. In case it fails to receive permission, it plans to go ahead with a codeshare between the 2 carriers, which can
Merger process underway
The larger merger process between the 2 airlines appears to be proceeding easily. The 2 low-cost airlines have already moved to a single, unified reservation system, and Aloke Singh, the CEO of Air India Express, has also taken charge of AirAsia India.
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Once the merger is finalized, the brand new company is predicted to bring revenue, cost, and operational advantages through broader adoption of every airline’s best practices, systems, and routes, and conferring greater economies of scale. The brand new Air India Express will deal with leisure-oriented and price-sensitive markets while improving connectivity between key domestic cities and Air India’s fast-expanding international network.
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Source: The Economic Times