NEW DELHI: A decision to merge Air India and Indian airlines is likely to be taken in the current fiscal to turn the combined entity into a mega carrier with about 130 aircraft to take on the major global carriers like Singapore Airlines, Emirates and British Airways.

http://timesofindia.indiatimes.com/...how/1450525.cms

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I think its a good idea and the right time to merge the two carriers. With new aircrafts on there way an attempt to create an airline that actually corresponds to the size of Idnia's growth would make a great ambasador for India to the world. Hopefully they also do a tremendous make-over of the inflight entertainment systems and services in general.