Parl panel slams govt on AI-IA merger

Calls for 'suitable' action for 'whimsical' decision

PTI | March 12, 2010



A parliamentary committee today lambasted the decision to merge Air India and Indian Airlines and asked the government to have separate domestic and international airlines under a single holding company.

It also recommended fixing of responsibility on "agencies and individuals" who took such a "whimsical" decision and sought "suitable action" to prevent such "intangible loss" being caused to a state-run company.

Describing the merger as "ill-conceived and erroneous", the Committee on Public Undertakings (COPU) said, "The root cause of the ills plaguing NACIL (National Aviation Company of India Limited) is the 'merger' which was flawed at its very inception and which never really took off.

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