There is no denying that both these air carriers were meant to complement each other. The replication of feeder routes and infrastructure led to competition and a downturn in fortunes for both the airlines. This will now be avoided. The two-tier structure comprising a holding company and a joint managerial group for operational control should help the companies overcome a basic problem, which has been a lack of effective internal controls. This, in turn, has translated into a lack of effective route-related fare-cum-incentive structures. A joint planning and policy group will help formulate uniform HRD policies, plan optimal investments andcoordinate strategies.

But given the carriers' precarious financials, swift action is the need of the hour. The management should be strong enough to implement quick code-sharing agreements between the two carriers and international airlines. They should also have the bargaining power to ask the government for rationalising aviation-turbine fuel prices to international standards.

Another matter which cannot be delayed any further is the acquisition of the new fleet of medium-range long-range (MCLR) and other aircraft for both AI and IA. This has been delayed for over two years. In fact, according to some published data released by the US Bureau of Labour and Statistics, AI could well have lost around Rs 350 crore owing to the delay in acquiring the MCLR aircraft due to a 5 per cent per annum escalation in costs.