Indian Government: Air India and Indian merger still on track

The Indian government has said that the merger process of Indian Airlines Ltd. and Air-India is very much on track.

A Group of Ministers is due to meet in January 2007 to consider the report prepared by cabinet secretaries.

Union Minister for Civil Aviation Praful Patel said in a statement that the process of merger will be completed by the end of the current financial year.

He added that an initial public offering (IPO) of the airlines is in the offing. Though, they would wait till the merger to be complete before releasing an IPO for better valuation of the combined entity.

Patel added: “Being a State subject, the sales tax on ATF should be reviewed by all States and I have already spoken to all States that incidence of the sales tax is very high. Besides, with airports coming up all over the country, the connectivity will also be affected and so next year, we will have one major conference on aviation and will invite all the States to attend.”

Popularity: 3% [?]