This presentation is the analysis of the mergers decision taken for Air India and Indian Airlines.

2. • Objectives
• Introduction
• Research Methodology
• Ratio Analysis
• Air India journey map
• SWOT Analysis
• Decision Analysis
• Pre and Post Merger Analysis
• Trend Analysis with Jet Airways
• And Kingfisher Airline
• Recommendation for NACIL

5. • National Aviation Company India Limited (AIR INDIA).
• Incorporate:- 30 March,2007 Employees:- 32000
• On 27 August,2007 Ministry of Corporate Affair Approved
the merger of Air India and Indian Airlines with NACIL.
• Deals in- Air Travel, Maintenance, Cargo Services.
• Ownership:- Central Government (Arvind Jadhav, Chairman
& Managing Director)
• Subsidiaries:-
1. Hotel Corporation of India Limited
2.Air India Charter Limited
3.Air India Air Transports Services Limited
4. Air India Engineers Services Limited

6. • Aviation sector in India has been transformed from an
over regulated and under managed sector to a more
open, liberal and investment friendly sector since
2004.
• Entry of low cost carriers, higher house hold incomes,
strong economic growth, increased FDI inflows, surging
tourist inflow, increased cargo movement, sustained
business growth and supporting government policies
are the major drivers for the growth of aviation sector
in India.
• Forecasts by AAI for the next 5 years have projected a
sustainable growth rate of 16% for international and
20% for domestic aviation sector.

10. F.Y Total Borrowing Short Term Bank Loan
March 2002 2909.95 1364.22
March 2003 2168.60 901.8
March 2004 1478.57 575.88
March 2005 1261.96 696.01
March 2006 3621.91 2464.91
March 2007 7665.10 6462.80

17. AIR INDIA
Particu
lars
Mar
2002
Mar
2003
Mar
2004
Mar
2005
Mar
2006
Mar
2007
Total
inco
me
5051.725706.246261.237789.029339.449627.8
PAT 15.44 133.86 92.33 96.36 14.94 -447.93
BORRO
WINGS
2909.9
5
2168.
60
1478.
5
1261.
9
3621.
91
7665.
1
INDIAN AIRLINES
Partic
ulars
Mar
2002
Mar
2003
Mar
2004
Mar
2005
Mar
2006
Total
Income
3887.64 4177.97 4734.02 5389.97 5814.36
PAT
-346.16 -203.97 71.57 36.42 55.56
Borrowi
ng
1382.11 1139.93 722.96 471.96 386.31

18. Particulars Amount (Rs.Crores)
Total Debt 7900
Working Capital Loan 13000
Long Term Loan 22000
Loss Incurred(F.Y 2007-08) 2226
Loss (F.Y 2008-09) 5000(Approx.)
Manpower Cost 18% of Total Expenditure.

19. REASONS FOR MERGER:-

20. • Trend analysis helps us in the analysis of
overall Industry trend and the Financial
analysis of the competitors.

21. FINANCIAL DATA JET AIRWAYS
Particulars Mar 2005 Mar 2006 Mar 2007 Mar 2008 Mar 2009
Total
Income 4,379.57 6,060.47 7,373.39 9,448.34 12,014.90
PAT
391.99 452.04 27.94 -253.06 -402.34
Debtors
turnover
ratio
17.82 27.94 -253.06 -402.34 27.94

22. FINANCIAL DATA OF KINGFISHER
Particulars Mar 2005 Mar 2006 Mar 2007 Mar 2008 Mar 2009
Total
Income
305 1285 1800 1456.2 5269
PAT
-26 -391 -745 -253 -1613