Impact of Merger of Air India and Indian Airlines

The erstwhile Air India had registered profit of Rs. 65.14 crores and Rs. 12.43 crores in 2004-05 and 2005-06 respectively. During the same period, the erstwhile Indian Airlines had also registered profit of Rs. 71.61 crore and Rs.63.00 crores. However, erstwhile Air India suffered a loss of Rs. 541.30 crore and the erstwhile Indian Airlines suffered a loss of Rs. 320.97 crore during 2006-07. The merged Air India has also suffered loss of Rs. 2226.16 crore in 2007-08, Rs. 5548.26 crore in 2008-09, Rs. 5552.44 crore in 2009-10, Rs. 6865.17 crore in 2010-11 and the estimated loss for 2011-12 is Rs. 7853 crore. Air India has completed integration of 74% processes and integration of 23% processes is in progress. The remaining 3% processes are yet to be initiated. The manpower integration is one of the important processes which is yet to be completed. This information was given by the Minister of Civil Aviation Shri Ajit Singh in a written reply to a question in Rajya Sabha today.