http://www.bloomberg.com/apps/news?pid=20601091&sid=aGicsHCxNf9I&refer=india

India Completes Merger of Air India, Indian Airlines (Update1)

By Santanu Choudhury

Aug. 24 (Bloomberg) -- India completed the merger of state- run carriers Air India Ltd. and Indian Airlines Ltd., saying the combination will create one of the top 30 airlines in the world by fleet.

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By 2011, Air India will have as many as 135 planes, V. Thulasidas, who was named chairman of the merged airline, said on Aug. 22. Vishwapati Trivedi, who was the chairman and managing director of Indian Airlines, will be the joint managing director of the new airline.

Indian Airlines, until now the third-biggest domestic carrier, ordered 43 planes from Airbus to expand services and regain market share from legacy and low-fare rivals such as Deccan Aviation Ltd.

Yeah, a merger of the worst airline in the world with the third-worst airline.

It is like an Appalachian wedding of inbred cousins, and the progeny will carry the worst traits of both airlines.

Telling is "the merger won't lead to job losses for the 34,000 employees" ... in other words no synergies from streamlining, continuing the Government interference in business that plagues India and keeps it in the Fifth World, while China, for all its problems, is growing by leaps and bounds and is beginning to develop a solid infrastructure. No job losses due to rationalization? No job losses firing the incompetent or non-caring employees (which, true, might lead to the loss of about 33,000 employees).

Who wants to bet how long this combination lasts in the face of competition from high-quality carriers such as Singapore, Emirates and domestic Jet, before the Government needs to bail it out with cash, rather than giving it some tough love to turn itself into a real airline?

Yeah, a merger of the worst airline in the world with the third-worst airline.

.. and which is the second worst airline in the world?