The merged entity of state owned carriers Air India and Indian Airlines, is likely to save a whopping Rs 500 crore annually by avoiding duplication of flights, staff and related infrastructure on major destinations in the Gulf and the Middle East. The savings would come from rationalisation of flights to these sectors, sharing of critical infrastructure like ticket counters and airport lounge area and ground handling staff.
At present, both the airlines fly to common destinations like Kuwait, Doha, Muscat, Bahrain, Jeddah, Dubai and Sharjah, but the flights would be rationalised post merger. In the Middle East and Gulf sectors, Air India and Indian Airlines flights take off barely minutes after each other, say airline officials. Sharing ground handling staff and parking slots on the Gulf routes would help boost revenue by nearly 2%. Post-merger, the airline is targeting a turnover of over Rs 10,000 crore annually.
