Air India + Indian Airlines!!
Air India and Indian Airlines are going to merge ...
hmmm ...
hmmmmmm ...
and whats next?
A world class successful airline with a positive number in the profits column of the balance sheet!
so I wish.
The advantages of a merger have been known for time immemorial. The two airlines would have a larger network and can reduce their operating costs, but then why do most mergers around the world not succeed?
Lessons would have to be learnt from international experience in this regard. Many challenges lie ahead for the combined entity before the upbeat rhetoric can bear any fruit. No lay-offs, workers unions, difference in pay scales and work cultures is the tip of the iceberg before even the smooth functioning of the combined entity. The time taken to complete the merger would be another important factor, especially in a fast growing sector with ever-increasing competition.
A strong visionary leadership with a non-interfering supportive government is the key to the success of this merger. Is that too much to ask?
hmmm ...
hmmmmmm ...
and whats next?
A world class successful airline with a positive number in the profits column of the balance sheet!
so I wish.
The advantages of a merger have been known for time immemorial. The two airlines would have a larger network and can reduce their operating costs, but then why do most mergers around the world not succeed?
Lessons would have to be learnt from international experience in this regard. Many challenges lie ahead for the combined entity before the upbeat rhetoric can bear any fruit. No lay-offs, workers unions, difference in pay scales and work cultures is the tip of the iceberg before even the smooth functioning of the combined entity. The time taken to complete the merger would be another important factor, especially in a fast growing sector with ever-increasing competition.
A strong visionary leadership with a non-interfering supportive government is the key to the success of this merger. Is that too much to ask?
posted by Bhuwan | 3:43 PM
1 Comments:
Yes!!! It is too much to ask for.
We all know that politicians get a lot of their long haul during elections (and beyond) done through govt-owned modes of transportation. The bills are paid by the exchequer and ultimately show up in the budgetary deficit...
So which political party (ruling or wanting-to-rule) will want such a perk to go away once privatization sets in such sectors?
So forget about the economies of scale ... and in the same vein - the economies of scope !!!
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