AI-Indian merger to create National Aviation Company

25 May, 2007: The Air India-Indian merger would create an entity called National Aviation Company Ltd, according to Union Minister for Civil Aviation Praful Patel. He added that the new behemoth’s brand name would be Air India. A new logo, which features a bright orange Konark wheel, against a red background, has also been unveiled for the new company. The National Aviation Company is expected to go public in 2008.

The Maharaja will continue to be Air India’s mascot, said a report. Since Air India is a globally and nationally recognised brand name as well as the designated airline in bilateral aviation pacts, the merged entity will continue with the AI code.

The National Aviation Company’s registered office will be in New Delhi, while the corporate headquarters will be in Mumbai. The head offices for domestic operations as well as six different business units, comprising maintenance, repair and overhaul, jet shop, ground-handling, engineering, cargo and low-cost carriers, will also be in the Capital.

Speaking at the event to mark the occasion, Patel said that low-fare operations will be carried out under the Air India Express brand, while the existing brands namely Indian and Alliance Air will cease to exist.

An empowered group of ministers on February 21 had approved the proposal of the civil aviation ministry to make Indian Airlines and Air India a single company. The minister had earlier said the cost of the merger would be around Rs 200 crore, while the annual benefit would be Rs 600 crore.