Government approves Air India, Indian merger

The central government Thursday approved the merger of two state-run carriers Air India and Indian making the new entity the largest airline in India. The government will continue to be the sole owner of the entity. However, it will go for an IPO (initial public offering) after getting necessary approval from the finance ministry, according to sources. According to industry experts, the merged entity will have a fleet size of 125 new generation aircraft by 2010 after new aircraft are added and some of the existing ones are phased out to emerge among the top 30 carriers globally. The turnover will also top Rs.150 billion ($3.3 billion).

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