The Group of Ministers (GoM) has got the proposal of merger of state-owned carriers Air India and Indian (Airlines). Now, the GoM is going through various aspects of this long awaiting merger.

The Union minister for Civil Aviation Praful Patel met the employee unions of Air India and Indian Airlines both. Patel met the employees just to moderate their fears over the move for merger of both IA and India.

The minister explained the benefits of the merger to the employees. Patel has given a wider assurance to the employees their bright future prospects.

He told that an independent redressal mechanism would work for the merger. It will have representatives from the Aviation ministry, the Air India, the Indian Airlines, Department of Personnel and Department of Public Enterprises.

The mechanism will be there to ensure about the employees’ objections in a reasonable and convincing manner.

Patel said further that

the selection and appointment of personnel for various responsibilities in the merged entity would be happened through a trustworthy and transparent process.

He promised to employees of there will be no any economizing process, cuts or losses in pay structure, perks or any other allowances. The service conditions would be adjusted into the new entity in an ensured manner.

According to ministry estimates, the new combined entity will get benefit of Rs 820 crores by the end of the third year of merger.

According to the Indian Express report, the merger would

# Enhance customer propositions

# Get easy entry into one of the three global alliances

# Enable optimal utilisation of existing resources through improvement in load factors and yields on commonly serviced routes.

# Have opportunity to fully leverage strong assets, capabilities and infrastructure

# Enhance infrastructure constrained environment

# Increase potential to launch high growth and profitability businesses

# Get Enable the merged entity to command better valuation potentially

# Enable operating a combined fleet strength (112) which will be the largest in India.

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