MERGING AND ACQUISITION

A merge is the fusion of two or more enterprises, in which one survives and the other looses its identity, in other words it is an absorption.

Lately, Indian companies have experienced a lot of merges with its companies. One example of that is the merge of Air India limited, national aviation company of India and Indian Airlines. The amalgamation of the previous three companies was approved by the board directors of all the three companies in New Delhi. But the process started in the 1990's.

It was decided that post merger the new entity's name was going to be "Air India". Maharaja will be retained as the mascot, while the logo will be modified to a red colorful flying swan.

The new airline operates both in the domestic and international sectors.

The process was only initiated in 2006 and the plan for the merger was finally approved by the Union Cabinet in 2007. Under the terms of the merger all the properties, undertakings and libilities of Air India and Indian Airlines were to be transfered to National aviation company.

This merger was expected to create one of the biggest ailines in terms of fleet size, which placed the company between the top 10 airlines in Asia, the top 30 in the world and India's first airline with over 100 aircrafts.

The motives for the merger were:

1. India was the fastest growing aviation market in the world.

2. The number of people traveling by air had been increasing in the country.

3. The main reason was the low cost of airlines in the country, which mae air travel possible for India's large middle class.

Since then the entry of new airlines icreased, but it cannt be forgotten that Air India, Indian Airlines and National aviation company's merger created India's first airline.

BIBLIOGRAPHY:

ANONYMOUS. The proposed Air India-Indian Airlines merger. (Electronic document). http://www.icmrindia.org/business%20Updates/micro%20casestudies/Business%20strategy/MCBs0018.htm

Image taken from: http://www.1vuelos.com/wp-content/uploads/2010/07/air-india-logo.gif