March 29, 2007: An official announcement is expected soon on a high flying merger. The amalgamation of the country's state-owned domestic and international carriers, Indian and Air-India is just a few days away. First reports say that the name of the merged entity too has been decided. India will soon have a new improved state carrier, christened Air Indian.

Various media reports have in the meanwhile said that the government has registered a new company, called the National Aviation Company Ltd. This new company is expected to take forward the amalgamation of the two airlines, plus their low-fare subsidiaries, Air India Express and Alliance Air.

The amalgamation is indeed going to be one of the land marks in India’s aviation history. With Air India and Indian boasting of a combined fleet of 122 aircraft and over 34,000 employees, including 1,315 pilots, the merger will create one of the largest airlines in the world in terms of the number of aircraft. According to reports the government expects the merged entity to save around Rs 5,000 crore on an annual basis from synergies in operations and sharing common facilities.

With the formal announcement coming up, major decisions regarding the merged entity are being taken up on a faster mode. Among them is one with regard to the mascot. It is believed that the ‘Maharaja’ mascot of Air India may be adopted as the logo for the new airline. Further, it may also be decided that the initials of the new airline would remain A-I, as it has already brought in unique international brand equity for Air India.

Meanwhile, a sticky issue is also being sorted out simultaneously as the two carriers speed ahead towards the merger. The Union government has assured airline employees that their interests, including employment conditions, wages, seniority and career progression, would be taken care of and a grievance redressal mechanism would be in place to protect their interests. The suggestion is that a careful integration of manpower needs be done at various levels. Consultant Accenture has reportedly mooted a top-to bottom integration of the employees and has proposed that the pay scales be revised to bring parity in promotion procedures, according to a report. So with almost all issues now being sorted out, the runway is hassle free, well almost.

The biggest airline will see more planes flying into its stables too. The two carriers have placed orders for more aircraft. Reports said that Air-India has ordered 68 Boeings, while Indian has finalised the acquisition of 43 Airbus aircraft. So by year 2011, these new planes will also be Air Indian’s own, making its stock soar high in the industry and service circles. Get set for the new Air Indian.