The Hindu : National : AI, Indian merger by year-end: Patel

Online edition of India's National Newspaper
Wednesday, May 03, 2006

National

National

AI, Indian merger by year-end: Patel

Special Correspondent

NEW DELHI : Reaffirming his decision on the merger of Air India and Indian Airlines, Minister of State for Civil Aviation Praful Patel on Tuesday said a management consultant would be appointed soon to go into the nitty-gritty of the proposal."Both the airlines have done their homework. The management consultant will provide the roadmap of the merger and how to implement it. The broad decision on the merger has been taken and the time frame for it is this year-end," Mr. Patel said here.

Replying to queries, he said the consultant would suggest if the proposed Initial Public Offering (IPO) would fetch a better evaluation as a single entity or both the national carries could go for the IPO separately. "The Government has to take a cautious decision but I am for merger, there is no going back on it."

On the fate of employees as Air India and Indian together have about 35,000 personnel on the rolls, Mr. Patel did not foresee any problem as the staff would remain with a single entity, unlike the Delhi and Mumbai airports where a joint venture company would take over.

He said the consultant would also consider how to shape up Alliance Air and Air India Express, their two subsidiaries, in the post-merger period.

To boost regional connectivity, he said the new Civil Aviation Policy, yet to be approved by the Cabinet, would offer sops to smaller and newer airlines to operate to smaller cities. "The sops can include waiver of all charges, including landing and parking charges."

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