Panel to finalise blueprint for A-I, Indian merger next week

The grand plan to merge Air-India and Indian to create a mega-airline is expected to cross a key milestone next week with a committee of secretaries (CoS) clearing the modalities of the much-discussed wedding on the Indian skies. The CoS, headed by cabinet secretary BK Chaturvedi discussed the merger plan and decided to hold another meeting to seek clarifications from the managements of both airlines. The green signal from the CoS would enable the empowered group of ministers (GoM) to approve the merger and seek formal clearance from the Union Cabinet. The CoS considered a presentation by Accenture — the consultant appointed to assist the merger — on the modalities and sought certain exemptions while indicating its in-principle approval to the grand alliance which will create an airline of size rivalling global leaders like Singapore Airlines or Emirates. Besides Mr Chaturvedi, those who attended the meeting include civil aviation secretary Ajay Prasad, finance secretary Ashok Jha, revenue secretary KM Chandrasekhar, law secretary PK Vishwanath and PSE secretary RC Panda.

Civil aviation ministry sources said the CoS was convinced about the commercial aspects of the merger. This was the first meeting of the committee and one more is expected within a week, they added. The GoM had given the panel two weeks to submit a detailed report. Various aspects like pooling of human resources would be discussed at the next meeting of CoS, it is learnt. According to sources, the committee is likely to invite chiefs of both Air-India and Indian to the next meeting to provide inputs on the inconclusive aspects. Apart from the legal and financial issues of the merger, the CoS would also discuss key issues such as branding and headquarters of the merged entity. The impact on financial, commercial and passenger facilitation aspects would also be studied at the next meeting. Civil aviation minister Praful Patel had earlier said that unresolved issues would be taken up by the GoM after the secretaries provide their suggestions. Prime Minister Manmohan Singh has already indicated his backing for the proposed merger.

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