AI, Indian merger idea gets wings
AI, Indian merger idea gets wings
Group of Secretaries will give recommendations in two weeks; possible merger will create mega-airline.

New Delhi: The Government on Monday decided to set up a group of secretaries to study the proposed merger of Air India and Indian.

The decision to set up the group of secretaries was taken at a meeting of a Group of Ministers, which was briefed on the operations, employees and taxation at the two airlines.

"A small group of Secretaries headed by Cabinet Secretary B K Chaturvedi will examine all issues and present their recommendations in the next two weeks, after which the GoM will meet again," said Civil Aviation Minister Praful Patel after a meeting.

The issue of branding of the proposed new entity after the merger of the two state-owned carriers also came up for discussion at the first meeting of the GoM, headed by External Affairs Minister Pranab Mukherjee.

A presentation was made to the GoM by the consultant selected for the purpose, M/S Accenture.

The proposed merger of Air India and Indian would establish a mega carrier with over 130 aircraft.

Both carriers have together placed orders for 111 new aircraft from Boeing and Airbus Industrie, most of which would be used to replace their existing fleet of leased or aged planes.

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