air india mergerr
DESCRIPTION
Merger and acquisitionTRANSCRIPT
Welcome To Merger
Presentation
By:NasirSharif
Habeeb
Merge BetweenAir
India& Indian Airlines
The airline was set up under the Air Corporations Act, 1953 with an initial capital of 32 million and started operations on 1 August 1953.
Indian Airlines was the second largest airline in India after Jet Airways while Air Sahara controlled 17% of the Indian aviation industry.
• Air India was founded by J.R.D TATA in July 1932 as Tata Airlines a division of Tata Sons Ltd.
• Air India is the flag carrier Airline of India. It is part of the Gove.
• Air India has the fourth largest share in India's domestic air travel market, behind Jet Air Ways, Kingfisher and Indigo.
Merged
The Government of India, on 1 March 2007, approved the merger of Air India and Indian Airlines.
Formed As
Aviation Company of India Limited (NACIL)
• The Authorized and Paid-Up Share Capital of the merged entity will be
1500,05,00,000/- and 145,00,00,000/-, respectively
• The new entity will be known as “Air India” while “Maharaja” will be retained as its mascot
• The logo of the new airline:-
Current Status AFTER MERGER
Pre-Merger Estimate• The Merger of the Company
would result a profit of 1000 Cr in 1st year Itself
Post Merger Fact• Losses Escalates From• Rs 1200 Cr. 1st year
• Rs 2600 Cr. 2nd year
• Rs 5500 Cr. 3rd year
Pre and Post-merger profit and Loss of Air India
Criticisms
Approval of the Government for the merger of Air India with
erstwhile Indian Airlines, was "ill-timed
Karan SingMinister of Tourism and Civil Aviation in 1971
Air India-Indian Airlines merger a very bad idea
IS Maharaja Healthy now?
Grand plans to resurrect the ailing Maharaja
We will bring the airline back to life," said civil aviation minister Vayalar Ravi
• The government plans to take the loan burden of 20,185 crore that the carrier had borrowed for purchase of 111 aircraft (68 Boeings and 43 Airbus)
The process of entire merger which escalate the negligence of the Government as well as Civil Aviation which makes people to suspect about the merger process after civil aviation grant a license to private air line companies where air India was really earning marginal profit.
• Air India committed 35000 Crore for buying 68 air craft at a time its annual turnover was just 7000 Crore.
THANK YOU