New Delhi, Feb. 12: The government should be cautious with its plan to merge state-owned oil companies such as ONGC and IOC, analysts said.

They pointed out at the botched-up merger of Air India and Indian Airlines, which resulted in the national carrier looking for government support to survive.

Air India Express (AIE), Air India's low-cost subsidiary that mainly caters to Gulf-based traffic, may soon be forced to do the inevitable.

The airline which has so far collaborated only with parent company is exploring an option of getting into business tie-ups with other airlines in order to compensate for dwindling passenger traffic to/from Gulf countries.

Mumbai: Acting on aviation regulator DGCA’s orders, Air India has taken off flying duties its operations department head for skipping the mandatory pre-flight medical test. The orders to remove Air India Executive Director (Operations) Capt A. K. Kathpalia from flying duties were issued by the DGCA flight safety department on Wednesday, they said.

“In compliance with the DGCA orders, Capt Kathpalia will not be assigned any flight to operate any more,” airline sources said.

The government’s plan of listing Air India is an alternative which has come about after repeated failures in securing a strategic buyer for the airline. On Wednesday, Mint reported that the government is looking at a three-step plan to corporatise the beleaguered state-owned airline.

The first step is to get the banks to recast the airline’s working capital loan into equity by a consortium of lenders. Followed by appointing professionals to run the airline. The last step being its listing in the bourses.

Having reported an operating profit of Rs 105 crore for 2015-16 fiscal, Air India is expected to post an improved operating profit margin this year as well, even as liquidity constraints continue to impact the smooth performance of the national carrier, the government said on Tuesday.

Air India, over the years and especially since the implementation of the turnaround plan, has been constantly improving its operational as well as financial performance, Minister of State for Civil Aviation Jayant Sinha said in a written reply in Rajya Sabha.

A Delhi-bound Air India flight from Bhopal, carrying 122 passengers and crew on board, was diverted to Jaipur on Monday after the aircraft suffered a bird hit.

All the passengers deplaned safely after the aircraft landed at Jaipur, an Air India spokesperson said.

National carrier Air India will receive Rs 1,800 crore as equity infusion in 2017-18 under the government's ongoing financial assistance and the amount is slightly higher than the allocation for this financial year.

The allocation has been made in the Union Budget for 2017-18, which was presented by Finance Minister Arun Jaitley on Wednesday.

New Delhi: Air India has shortlisted three consulting firms—McKinsey and Co., Bain and Co. and EY—for a project to draw up its business strategy for the coming years, said Ashwani Lohani, the state-run airline’s chairman and managing director.

The firms have been shortlisted out of several that made presentations after the airline floated a tender inviting proposals in October last year.

NEW DELHI: Air India put the lives of its passengers at risk by not adhering to set operational rules at Leh airport, one of the most unsafe in the country. The matter came to light after a video showed an Air India flight turning towards the hills immediately after take-off.

While the Directorate General of Civil Aviation (DGCA) is investigating the matter, the national carrier has off rostered three pilots from flying to Leh, post the regulator’s investigation. “Air India is a little apprehensive about where the video has originated from.

International air travel is set to get costlier as Air India on Thursday increased the fuel surcharge component in fares on several routes. The move comes in the backdrop of a rise in jet fuel costs.

On routes from India to south-east Asia and Australia, the fuel surcharge has been revised by $15-$35 (Rs 1,000-RS 2,400) and the same was notified to travel agents on Thursday. The airline is revising the surcharge on Europe and US flights, too, by up to $80 but is yet to notify the change, it is learnt.

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