The document summarizes the merger of Air India and Indian Airlines to form National Aviation Company of India (NACIL). It discusses the history of the two airlines, the volatile aviation industry environment, issues with the merger execution including increased debt loads and declining customer service, and objectives of analyzing the case such as implications of poor strategic execution and neglecting employee concerns during the merger.

1. By,
Sarasvathi T A
Divya Uthup

2. Agenda
 Introduction: Why NACIL?
 Company History: How NACIL Came To
Be?
 Industry Overview
 Pre-Merger Details
 Post Merger Effects
 Issues Dealt in the Case
 Objectives of the Case

3. Why NACIL?
 Live Example in Business Strategy
 Complexities involved in the Integration
 What Not to Do in a Merger!!
 Branding India!

4. How NACIL Came To Be
TATA Airlines
Air India
Air India 1953 Indian Airlines
International
NACIL

5. Industry Overview
 Volatile nature of the Industry
 Capital Intensive Nature
 Highly Competitive
 Global recession
 Declining passenger revenue
 ATF prices – All time high

6. Pre-Merger Details
 Massive fleet expansion planthe
On May 2007,
 Air India Looking for Bailoutthe
GOI finalized
 Suggestion plan of Indian’s
for Merger by GOI
merger with Air
 Accenture Recommendation
India.
 Employee Strikes

7. Expectations
 Financial Turnaround of Air India
 Economies of Scale
 Integration of network
 Integration of IT systems
 Leveraging scale for joint procurement
 Customer Service
 Star Alliance
 Reincarnation of the brand

8. Post Merger Effects
 Deeper Debts
 5000 Crore
 Poor customer
service
 Loss of Market Share
 Lowest Passenger
Load
 Decline in morale

9. Issues
 (Mis)Management
 Execution of the turnaround plan
 ERP implementation
 Marketing
 Lack of Vision

10. bjectives
 Implication of bad execution of strategy
 Effect of neglecting employee concern
before merging two entities
 Right time to go for ERP as a part of
Turnaround strategy
 Management instability

11. Any Questions??