Govt may go for single IA, A-I float post merger

New Delhi: The government has changed its plan for initial public offers (IPOs) of Indian Airlines and Air-India by deciding to go for a single float after the two airlines are merged next year, according to a senior civil aviation ministry official.
The group of ministers (GoM) on the merger, due to meet on November 27, would take the final decision, the official said.
According to industry analysts, the long process of unification and the consequent IPO may put on hold the plans of the two airlines, who need money for fleet acquisition.
Indian Airlines has placed an order with Airbus for buying 43 A 320 aircraft for around $2 billion while Air-India has placed a $6.9 billion order with Boeing for 83 aircraft.
The two have to make advance payments for these buys.
15/11/06 Bipin Chandran/Business Standard

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