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Air India-Indian Airlines merger gets go-ahead

Air India-Indian Airlines merger gets go-ahead

   Indian newspapers and the Wall Street Journal reported Wednesday that a merger between India's two state-run airlines has been given the go-ahead.

   The merger, which would join Air India and Indian Airlines, would create a single national carrier with revenue of $3 billion and a fleet of 130 planes, the Hindustan Times said. Air India has 46 planes, but has ordered 68 new planes from Boeing and will phase out 40 of its oldest ones.

   Indian Airlines has 70 planes and has 43 Airbus jets on order and will similarly phase out 43 of its oldest planes, the newspaper said.

   It's thought the single national airline will compete with other medium-sized global airlines.