Blending the names of the country’s state-owned domestic and international carriers, Indian and Air-India, respectively, the government is planning to brand the merged entity as “Air Indian”. The Cabinet cleared a proposal to merge the two airlines last month.
Sources close to the development reveal that after hectic negotiations and several rounds of meetings, the choice of brand was a unanimous one.
A new company called National Aviation Company Ltd has been registered by the government to amalgamate the two airlines along with their low-fare subsidiaries, Air India Express (of Air India) and Alliance Air (of Indian).
As for the new airline’s logo, Air India’s famed “Maharaja” is reported to have found more favour than Indian’s “Ashok Chakra” at discussions involving the brass of the two carriers. An official announcement on the decision is expected next week.
When contacted, an Air India spokesperson said, “We have not been informed of the new brand or the logo yet. A decision on the broad contours of the proposed merger is expected soon.”
The logic behind the new brand name is to maintain the current top position of Air India on the ABC directory, which lists airlines alphabetically and is widely used as a reference book by the International Air Transport Association, other international airlines and tour operators worldwide.
An Air-India functionary told Business Standard, “It makes sense and is practical to retain the names of both the airlines.”
Also, the initials of the new airline would remain A-I.””It makes sense and is practical to retain the names of both the airlines. Also, the initials of the new airline would remain A-I.”
There was intense pressure from the staff of the two airlines to maintain their respective identities in the new brand.
While the Air India staff had maintained that their international brand equity is much higher, the union representatives of Indian Airlines were lobbying for their stronger brand value due to higher passenger load than Air India.
source: http://www.rediff.com/money/2007/mar/29airindian.htm
By: KabirT - 2nd April 2007 at 16:04
Thanks for the article Steve. The article doesen’t state anything new, although some inaccuracies are there. Air India, financially or publicaly were not in there prime in the 1990s.
Also my sources now tell me that Kingfisher Airlines is gaining very quickly to Indian, jet and Deccan as one of the top airlines in India. They are even planning to set up a company in USA, so that they can start flights on the lucrative US-India route, bypassing the Indian 5-year no international operations law.
By: steve rowell - 2nd April 2007 at 06:03
Decks are now clear for the merger of Air India and Indian, the country’s two state-owned carriers, which will combine under the newly formed National Aviation Co. Ltd.
No decision has been made on the brand, logo or headquarters location for the new airline. Accenture is advising the government on the merger, which is expected to be complete by June. The 16 unions representing close to 33,000 employees of both airlines have come around to accepting a process that the government said will revive the carriers’ flagging fortunes. The new airline will be listed in the bourses about a year after the merger.
Like many flag carriers, both Air India and Indian face an existential crises in an era when service quality and passenger focus are more important than livery. From its monopoly position in the 1990s, Indian steadily has ceded market share and now lags behind Jet Airways and three-year-old LCC Air Deccan. For Air India, the situation is even more grim. Holding only 16% of the outbound international market, its domain is being whittled away by the onslaught of international airlines that have greater access to India and private carriers who have started flying abroad.
The merger is being mooted on a decentralized model, meaning the new company will float subsidiaries for various operational functions. These will include a full-service airline, a low-cost airline (Air India currently operates Air India Express, a low-cost international airline), an MRO unit, a ground handling company and a cargo carrier.
Both airlines have launched significant expansions and will take delivery of more than 100 aircraft over the next five years. Air India ordered 68 combined 777s, 787s and 737-800s in 2006. Indian has begun induction of the first of 43 A320 family aircraft ordered from Airbus . The merged airline will have a fleet of 125 new-generation aircraft by 2010 and is expected to emerge among the top 30 carriers globally. Turnover is expected to top $3.3 billion.
Though Air India is the larger of the two with a turnover of INR95 billion ($2.18 billion) in 2005-6, its equity capital of INR1.53 billion is less than Indian’s INR4.32 billion. Air India’s net worth was INR5.5 billion at the end of 2006, while Indian had a negative net worth owing to earlier losses. However, a revaluation of assets is in progress and expected to wipe off this erosion. In addition, both carriers have huge real estate holdings that have not been valued for decades.
By: steve rowell - 30th March 2007 at 08:17
Anybody heard of a starting date for Melbourne services yet??
By: KabirT - 29th March 2007 at 22:11
So does this mean we’ll get to see those rebranded Air India 777’s in Melbourne after all
perhaps… it depends when the merger takes place. If not in 2007 you will see Indian A330s at Tullamarine though. 🙂
By: XEROX - 29th March 2007 at 13:32
“Air Indian”
It doesnt make sense, grammatically its wrong:confused:
Air French.
Air Chinease.
Air Canadian.
???
By: steve rowell - 29th March 2007 at 07:50
So does this mean we’ll get to see those rebranded Air India 777’s in Melbourne after all
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March 29, 2007 at 4:28 am