A-I merger with Indian to be put on fast track

New Delhi: The government is planning to put the proposed mega-merger of public sector airlines Air-India and Indian on the fast track. The merger would be done during ‘06-07, civil aviation minister Praful Patel said on Tuesday.
The government will take a decision on the IPO plans of the two airlines once the merger plan is final, he said.
While the government is clear about going ahead with the merger, the modalities have not been finalised yet. The final decision would be based on the valuation that would result,” Mr Patel said. The two airlines have already appointed financial consultants to chalk out the roadmap for their IPO plans. To facilitate the merger between Air-India and Indian, the government is likely to appoint a global consultant.
A number of internal committees, comprising officials of the two public sector airlines would also be formed to study various aspects of the merger. Once the merger plan is approved by the Union cabinet, the boards of Air-India and Indian would initiate steps to integrate the two airlines.
03/05/06 Economic Times

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