“I am personally not very happy with the way both carriers have been performing in recent times. I want them to take my words seriously,” Patel said, with Indian (Airlines) chairman and managing director Vishwapati Trivedi sharing the dais. “The national carriers have to realise that these are changing times and the onus to be competitive lies on them. The government will not be a mute spectator to the goings-on in both carriers and will take corrective action.”

Declining to elaborate on the “goings-on” in the airlines, Patel said: “I want to tell all employees of Air India and Indian Airlines that they have to come upto the expectations of both the government and the people.”

As first reported by The Indian Express, Indian Airlines has not only incurred huge losses in the first few months of the current financial year but the valuation of its total fleet has come down by around $200 million in the insurance finalised for this year. In a recent meeting to review the airline’s performance, Union Cabinet BK Chaturvedi also pulled up the airline officials, citing issues like grounding of at least 12 aircraft.

Reiterating the government’s resolve to go through with the proposed merger of both national carriers by the end of this financial year, Patel said the Prime Minister had constituted a Group of Ministers (GoM), chaired by Finance Minister P Chidamabaram, to deliberate on the issue. The GoM would include ministers of Civil Aviation, Defence, Personnel, Tourism and Culture, Company Affairs, Law, Public Enterprise and the deputy chairman of the Planning Commission. “We must see to it that by the end of the financial year, both carriers are merged into one and ready to take on the competition. The government has been very supportive of both national carriers and wants to eventually see a stronger national carrier,” Patel said.

Patel also reiterated the government’s stand that the merger would not be allowed to result in the retrenchment of employees of either airline. “We will find good ways to overcome these issues. However, it is in the interest of both the carriers to merge,” he added.