Indian and Air-India merger on track

Responding to indications that Prime Minister’s Office (PMO) in India has objected to the proposal to merge Indian and Air-India, the Civil Aviation Ministry has confirmed that there are no impediments in the process related to the merger of the two state-owned carriers. In fact, the Civil Aviation Ministry is likely to move a cabinet note on the proposed merger in November this year.
“There are no impediments in the process. Everything is going on as planned,” Civil Aviation Minister Praful Patel said. He added that Patel the proposed merger process was moving on track and would be completed as planned within the current financial year 2006-07.
Patel’s remarks follow a local media report, which shared that a composite note prepared by the PMO, comprising comments from the finance and commerce ministries, stated “the proposal in its current format is not viable because the two airlines were set up for different purposes and a merger will weaken their position in the domestic and international markets."
25/09/06 Satish Gupta l eTN Asia/TravelVideo.tv (press release)

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