Friday, October 20, 2006

New entity to up revenue by Rs 1200 cr

Mumbai: The proposed merger of national flag carriers Air-India and Indian Airlines is likely to enhance the revenue of the merged entity by Rs 1,200 crore.
Consultant majors Accenture, with Ambit Corporate Finance, are advising the government on the merger of the two airlines.
“The merger will enable the airlines to enjoy synergy of values which will cut down costs substantially and increase revenue flows, sources close to the development told Business Standard.
Stamp duty exposure will be mitigated through legislative sanctions or a government ordinance. There is also a finance ministry proposal to amend Section 72 (A) of the Income Tax Act to provide carry-forward of the unabsorbed loss of depreciation of both Air-India and Indian Airlines.
According to Accenture and Ambit’s first report, the merged entity’s fleet of 120 aircraft would be larger than Emirates’ (93), Singapore Airlines’ (118) and Malaysian Airlines’ (110).
20/10/06 P R Sanjai/Business Standard
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