No IPO at least for year: CMD Raghu Menon

Mumbai, Apr 1 (UNI) National Aviation Company of India Ltd (NACIL), the merged entity of Air India and Indian, today indicated that the much talked about Initial Public Offer of the national carrier might be deferred this year and stressed for further equity infusion by the government.

The new Chairman and Managing Director of NACIL, Mr Raghu Menon talking to newsmen soon after taking charge from Mr V Thulsidas however indicated that an employee stock option plan might be put in place soon.

''We are working on a very concrete basis on ESOP on which the work is going on and it could be implemented within five to six months'' he added.

He sought reduction in sales tax on Aviation turbine fuel by States to help improve the financial condition of the company.

''Improved load factor will increase the company's revenue apart from avoiding the duplication of the routes of Air Indian and Indian will also improve the financial condition,'' he added.

Mr Menon, who was on the board of directors of Air India and Indian said he was familiar with the functioning of the merged entity of both the airlines and wanted to take the new entity at a greater glory in 42 months time he is having.

''We should be focused on customer services while most of the issues related to human resources after merger could be solved by next year,'' he added.

''We are not in a great state financialy observed Mr Menon and stressed for customer service and post merger implementation for solving this dilemma.

''Some formalities are remaining for joining the STAR alliance to have world wide footprint,'' he added.

He admitted that the delivery of 787 aircraft would be delayed as Boeing faced some problems.

''We need to strategies how to make up delay.

''We would need 111 aircraft in 2011/12 and so far 31 has been delivered'', he added.

UNI JM VK BJR HT145