AI-IA demerger on card..............

if you can't fix it, merge it.and if you still cant fix it. this seems to be the govt prescription for Air India and Indian Airlines, which were merged in aug 2007 despite widespread criticism.
intrestingly, the merger has actually not moved much beyond a common billiboard and a holding company.
with a rehab plan for Air India proving to be a fraught task, a proposal to undo the decision to forge Air India and Indian Airlines into a single entity has been mooted by the finance ministry.
The ministry which has to foot the bill for any revival package, is understood to be increasingly nervous over the viablity of bailout plans for the floundering carrier.
The salary and the promotional structures of the two airline remains different and the reconciling these has not proved easy. they continue to use different codes for flights and there is no synergy in terms of sharing aircraft and rationalising routes.