AI, Indian fly closer towards integration

Bangalore: Having got the Cabinet nod, the merged entity of state-owned international and domestic carriers Air India and Indian - National Aviation Company Ltd - is now in the process of drafting the Scheme of Amalgamation under Section 391-94 of the Companies Act.
This would pave the way for the integration of the two national airlines and their subsidiaries — Air India Express (Air India) and Alliance Air (Indian).
Sources in Air India said that once the draft is ready, it would be placed before the boards and shareholders (government) of both airlines for approval, after which a court's nod would be sought.
"After we get the clearance of the court for the amalgamation scheme, our creditors (suppliers and others) and institutional lenders (including US Exim, ICICI Bank, State Bank of India, Bank of India, Bank of Baroda, Punjab National Bank, ABN Amro and others) would also be required to put their stamp of approval on it," said an Air India source.
All this will take approximately 16 weeks.
03/04/07 Praveena Sharma/Daily News & Analysis

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Categories: Air India Apr 2007, Indian Apr 2007