The Hindu Business Line : AI may pick consultant for merger tomorrow

In a move that is likely to give a fillip to the proposed merger of Air India and Indian Airlines, a sub-committee of the Air India board is scheduled to select a consultant on Friday who would draw up a road map for the merger of the two state-owned carriers.

The sub-committee includes not only the Chairman and Managing Director but also the Director Finance of the two airlines.

In addition, the Chairman of ICICI Bank, Mr N. Vaghal, is also a part of the sub-committee.

The airline, which was mandated by the Ministry of Civil Aviation to seek applications from reputed merchant bankers, financial institutions and management consultancy firms for appointment of a consultant to advise on the merger, is to choose from the seven bids it had received.

"The sub-committee is likely to shortlist a consultant on Friday and the work for creating a road map for one mega airline should be ready within the next three months," official sources said.

Official tight-lipped

While officials were tight-lipped on how the merger would proceed, sources indicated that the current thinking in the Government was to complete the process through a "clean merger" rather than follow the model of having a holding company that could eventually facilitate the merger of the two airlines.

However, a final view on the way forward would emerge only after the consultant's recommendations have been approved by the Government.

The Minister for Civil Aviation, Mr Praful Patel, has already said the merger would be completed by March 31 next year.

The Ministry has also made a presentation before the Prime Minister, Dr Manmohan Singh, who is said to have given his approval for the merger to go ahead.

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