Deadline set for merged airline
telegraphindia.com
Civil aviation minister Praful Patel today said in Parliament that “the technical and procedural formalities for merging Air-India and Indian Airlines would begin immediately and one company with one name, one brand, one logo, one code and single financials is expected to be in place within 16 weeks”.
The new firm would be registered under the companies act in the next fortnight, a senior official said.
The officer said a new company would be incorporated under sections 391-394 of the Companies Act of 1956. It would take about 16 weeks to complete the major legal, technical and procedural formalities for the merged entity, the officer added.
The government proposes to register the new airline as a 100 per cent government-owned company, keeping in mind the Cabinet decision to maintain the public sector character of the enterprise.
However, the actual amalgamation and integration process is expected to be carried out in phases over two years, especially integrate the combined workforce of over 30,000.
“It is estimated that this decision would result in a net benefit of Rs 600 crore at the end of the third year of merger,” he said.
Printable Version |
published Mar 04, 2007
