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Friday, January 19, 2007
Indian - Air India merger - Aviation minister meets staff
As the merger gets closer, the employees of Air India and Indian, the two state-run airlines have been given a reason on why to say yes to the plan. Staffers from the two companies were today explained why the merger was inevitable from the perspective of savings, estimated at Rs 820 crore.

Civil aviation minister Praful Patel on Thursday assured the employees that the planned merger would neither lead to retrenchment nor any cut in salaries and emoluments. Explaining that a redressal panel comprising representatives of the ministry, two airlines, department of personnel and department of public enterprises would be set up to address the grievances of the employees in a fair and equitable manner, he added that the selection and appointment of personnel in the merged entity would be done in the most transparent manner.

Elaborating on the positive aspects of the merger, Patel told the employees of the two airline firms that it would give the new entity flexibility in financial and capital restructuring through revaluation of assets and cleaning up of financial books. The various unions of Air-India and Indian Airlines formed the audience as Patel tried to brief them about the merger process and the future of both the merged entity and the employees. He assured that the government would strive to resolve all issues regarding the merger of the two firms fully and amicably.

With this most important step too over, the government hopes there will not be tough hurdles as the merger process is set in motion.

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posted by a correspondent @ 10:31 AM    
1 Comments:
  • At 9:01 AM, June 05, 2007, Diptansu said…

    The merger of IA and AI is the precursor to them being disinvested. In order to make the entity attractive to an investor it makes business sense to merge them and show less costs on the books. This is the first step to these airlines being traded on the stock exchanges.

     
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