Air India, Indian merger could be delayed

New Delhi: The merger of state-run carriers Air India and Indian could be delayed as the Ministry of Corporate Affairs (MCA) has sought clarifications from the two airlines on objections by their employees on the amalgamation.
A cross-section of employees, at a five-hour long hearing in MCA here, raised several issues, including wage arrears and parity in career progression. They also observed that the demands should be settled and all statutory dues paid before the two carriers are merged.
Sources said following the hearing yesterday, the MCA would send the two companies additional questionnaires in a couple of days. At the hearing, 17 unions representing employees ranging from pilots and cabin crew to the ground staff had submitted their views on the issue.
A final decision on the matter would pave the way for the amalgamation of the two public sector airlines, proposed to be called Air India, after all legal formalities are completed. The newly-merged entity would be incorporated only after the Department gives its final nod.
01/08/07 PTI/Economic Times

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Categories: Air India Aug 2007, Indian Aug 2007