Air India and Indian Airlines: A Merger Gone Wrong?|Human Resource|Organization Behavior|Case Study|Case Studies

Air India and Indian Airlines: A Merger Gone Wrong?

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Case Details:


Case Code : HROB153 For delivery in electronic format: Rs. 400;
For delivery through courier (within India): Rs. 400 + Rs. 25 for Shipping & Handling Charges


Human Resource Management
Case Length : 19 Pages
Period : 2007-2012
Organization : Air India
Pub Date : 2013
Teaching Note : Not Available
Countries : India
Industry : Aviation


This case study is about human resource management issues at Air India (AI) after its merger. AI was the merged body of Air India Limited (AIL) and Indian Airlines Limited (IAL). The merger was approved in 2007 and the merged body was called the National Aviation Company of India Limited (NACIL). The case discusses the various HR issues and other reasons which led AI into a crisis. The merger was initiated with the aim of making profits and gaining high market share for the airline. But because of post merger HR issues like compensation, career progression, and salary payment, promotion issues, and employee strikes, the merger did not yield the intended objectives.

Experts said that poor management practices and improper planning had pushed the merged entity into trouble.

The case discusses in detail the major causes for the AI merger failure, and some of the practices undertaken by the management to make the merger a success. AI in addition to HR issues was also saddled with huge financial debts. These two issues gave raise to speculations whether AI would survive and achieve the objectives of the merger.


Study the issues at AI after the merger.
Analyze the key factors which contributed to the failure of the AI merger.
Discuss and debate whether AI will survive.
Explore strategies to resolve the AI's HR issues.


  Page No.
Air India Plunges 1
Unplanned Takeoff 2
5 Leaders in 4 Years 3
Integration 4
HR Issues 5
Strikes, Revenue Losses 7
Financial Issues 8
Operational Issues 9
What Went Wrong? 10
Different Strategies and Suggestions to Reform AI 11
Exhibits 14

Key Words:

Air India, Indian Airlines Limited, Air India Limited, HR Policies, Retention Strategies, Merger, Integration, Post-merger Issues, Competition, Career Growth, Talent Management, Training, Employee Attrition, Compensation, Performance Appraisal

Air India Plunges - Next Pages >>


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