The Hindu : Kerala News : Merger of Air India, Indian expected by March next

Online edition of India's National Newspaper
Monday, Sep 04, 2006

Kerala

Kerala

Merger of Air India, Indian expected by March next

S. Anil Radhakrishnan

THIRUVANANTHAPURAM : The proposed merger of Air-India and Indian into a single entity, to face the competitive market in the domestic aviation sector and abroad in the days ahead, would be completed by March next.

Roadmap

The consultant for preparing the roadmap for the merger has been handpicked from among the three short-listed companies, the chairman and managing director of Air-India, V. Thulasidas, told The Hindu here.

First report

The Consultant Accenture had been asked to submit its first report within 10 weeks.

Mr. Thulasidas said in the first step the report would go to the Union Cabinet for the formal approval of the merger. The legal merger process would take another 16 weeks.

"We hope to complete all formalities in 26 weeks and complete the merger by March next," he added.

Consultant service

The AI chairman and managing director said the service of the consultant would be available for one year after the merger to ensure the integration of the manpower, marketing and sales wings of AI and Indian.

The merger of the two-Government owned airlines would make it the largest airline company in the entire Asia. "It would give us lot more clout in the competitive market as a major force to be reckoned with," he said.

As per schedule

Mr. Thulasidas said AI's fleet acquisition programme is going on as per schedule.

"The contracts have been signed and the initial payments have already been made. Major payments are to be made. Eighty five per cent of the payment would be from the U. S Exim Bank as bank guaranteed loan.

"The airline is expecting the delivery of the Boeing 737-800 for Air-India Express in November this year, wide-bodied aircraft in February 2007 and the Boeing 787-8 in 2008. The seats and in-flight entertainment for B 737-800 and Boeing 777 have been finalised. The Boeing 777-300 LR [Long Range] will be used for non-stop operations to the U. S.," he added.

Fleet acquisition

Under the fleet acquisition programme, AI is to purchase 68 aircraft.

Of them, 18 would be for Air-India Express, a fully owned subsidiary of AI. The remaining 50 aircraft would be for AI.

Of this, 23 would be Boeing 777 aircraft, including eight B 777-200 LR Worldliners and 15 B 777-300 ER (Extended Range) and 27 B 787-8 Dreamliners.

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