Cabinet note on IA, A-I merger likely by Nov
The civil aviation ministry is likely to move a Cabinet note on the proposed merger of public sector carriers Air-India and Indian Airlines in November after it receives a report from consultancy firm Accenture.
“There are no impediments in the process. Everything is going on as planned,” civil aviation minister Praful Patel said.
He said the consultancy firm, appointed to prepare a roadmap for the merger of the two carriers, would submit its report by October.
“We hope the Cabinet note on the matter should be ready in November after we receive this report,” Patel said in response to questions, adding that the proposed merger process was moving on track and would be completed as planned within the current financial year.
Official sources said there were some key areas like human resources, operations and infrastructure, which needed to be looked into in greater detail, before the proposal could be finalised. A decision on the future of their subsidiaries, Alliance Air and Air-India Express, would also have to be taken, the sources said.
The merger of Air-India and Indian Airlines will create a mega carrier with about 130 aircraft.