National carriers miss ops merger

Mumbai: The national carriers Air India and Indian missed the July 15 date given by the civil aviation ministry to merge the operations of both the airlines under the new company National Aviation Company of India Limited, with combined routes and schedules and a common name, Air India.
The reason for the delay is reportedly getting creditors’ approval to complete the legal merger, which sources say, was received only last week.
After getting the cabinet nod for the merger in March, it was announced that the legal merger would be completed within three months. But that has been apparently delayed.
The legal merger of brand Air India, on the suggestion of Accenture consultants, appointed to help the government with merger-related issues, was to be completed under Companies Act with a joint application filed by the board of directors of both companies and an order from the ministry of company affairs under Sections 391-394 of the Act and a subsequent approval of the creditors.
Not specifying the reason for the delay, civil aviation ministry spokesperson, said, “The legal merger would now be completed on July 22 and the first unified face of the airline as brand Air India would be from August 1.”
16/07/07 Manisha Singhal/Daily News & Analysis

To Read the News in full at Source, Click the Headline

Categories: Air India Jul 2007, Indian Jul 2007