The Hindu Business Line : Indian, AI merger: Ministry to approach Cabinet in Nov

"A note based on the initial report prepared by a consortium led by Accenture, which has been mandated to draw up a road map for the merger of the two State-owned airlines, will be ready by November. We plan to go to the Cabinet soon thereafter seeking their approval for the proposed merger," said the Minister for Civil Aviation, Mr Praful Patel. The Government was keen to complete the entire merger by March , senior officials added.

Asked about the reported objections raised by sections of the Government, officials indicated the issues raised were not very serious. "Some issues might have been raised by some officials. But these are not serious enough to stall a process that has already been given an in-principle approval by the Prime Minister," a senior Government official added.

Sources indicated that before the merger can go through some issues relating to human resources, operations and infrastructure as also the future of the various subsidiaries needed to be looked into in greater detail.

The proposed merger would transform the new airline into a giant having a fleet of more than 110 new aircraft as both Air India and Indian are to start inducting newly purchased aircraft from this year.

Officials indicated that the merger would create a monolith that would be better positioned to take on global competition.

More Stories on : Mergers & Acquisitions | Airlines

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