Two wings, One Sky: How Indian Airlines redefined Indian Skies

New Delhi, India – In a landmark move that reshaped the Indian aviation industry, 2007 witnessed the historic merger of two of the nation's largest airlines: Air India and Indian Airlines. This mile-high merger was part of the government's strategy to ensure that the national carrier could compete more effectively with the increasing presence of private airlines in both domestic and international markets.

It was a significant step in the Indian aviation industry. The combined entity continued under the name Air India and brought together the international routes and branding of Air India with the domestic routes and operations of Indian Airlines, intending to create a more cohesive and efficient national carrier.

Yet, this marriage faced its true test not just in aligning fleets and networks, but in harmonizing these deeply rooted cultural identities, each with its own unique heritage, values, and ways of working.

Employee Concerns and Resistance

As in most mergers, employees from both airlines had concerns about job security, career progression, and changes in work culture. This led to resistance among the staff, who were accustomed to their respective former organizational practices and policies. "Before the merger, due diligence on HR issues was very poor" – stated Kapil Kaul, CEO of the South Asia division of the CAPA - Centre for Aviation. He noted the slow process of integration for staff below the deputy general manager level even years after the merger​​.

Integration of Workforce and Leadership

The two airlines had different pay scales, work norms, perks, and employee benefits. Harmonizing these disparate elements to ensure a fair and equitable work environment was a complex task during the entire integration process. Similarly, aligning leadership and management styles between the two companies required careful management and communication.

Customer Perception and Brand Identity

Maintaining a consistent brand identity and customer experience, while ensuring business as usual, was yet another significant challenge. For instance, Air India’s customers were accustomed to a certain standard of international service, including amenities, in-flight entertainment, and cuisine tailored for a global audience. Indian Airlines, on the other hand, had built its reputation around efficient domestic travel, with a focus on regional connectivity and localized services. Frequent flyers of both airlines had set perceptions and loyalty, and any drastic changes risked alienating these customer bases.

To address these issues, successful mergers often require careful planning, open communication, and strategies that respect and integrate the diverse cultures and practices of the merging organizations. The Air India-Indian Airlines merger, like many others, had to navigate these complexities to build a unified and cohesive new entity.

As experts in cultural assessments, we understand the depth and breadth of these challenges. Our expertise lies in ensuring that such monumental transitions are not just about combining entities, but about creating a synergized, and more powerful whole.

Reach out to us and ensure your journey is not just a merger, but a transformative flight to new heights of success.