GoM on AI-Indian merger accepts recommendations of secretaries

New Delhi, Jan 15 (UNI) A group of ministers (GoM) today accepted recommendations made by a committee of secretaries (CoS) for the long-pending merger of government-owned Air India (AI) and Indian so that they can beat growing competition from domestic and foreign airlines.

Civil aviation minister Praful Patel said the new mega entity should emerge by next fiscal year beginning April 1, something that will optimise fleet acquisition, leverage the asset base, strengthen networks and achieve economy of seats.

''The merger makes sound business sense. The new entity will be a formidable force. These are not easy times. Both AI and Indian will have to stand up to competition -- both internally and externally.'' He was briefing reporters after the GoM headed by external affairs minister Pranab Mukherjee broadly endorsed a report submitted by the CoS from various ministries. The CoS was headed by cabinet secretaries B.K. Chaturvedi.

The GoM accepted CoS recommendations on taxation and stamp duty issues. On integration of human resources, it broadly endorsed the recommendations and asked Mr Patel to address the concern of employees.

It was the second meeting of GoM. The next will be held later this month.

Mr Patel said the employee-aircraft ratio of the new entity will be brought to international levels. There will be no loss of jobs as both carriers have placed orders for new aircraft.

The integration of employees will be complete in six months to two years, said Mr Patel.

UNI