Unions may move court as MCA approves IA-Air India merger

New Delhi: The merger of state-owned carriers Air India Ltd and Indian Airlines Ltd into National Aviation Co. of India Ltd, or Nacil, which has been delayed by a month, is now likely to be announced this week, with the ministry ofcorporate affairs saying it has no major objection to the process, said two senior government officials familiar with the matter.
But the approval is likely to be challenged in court by worker unions.
The delay in the process of amalgamation of the two state-run airline companies into Nacil, registered in March, has stemmed from objections filed by the unions, officer guilds and former employees from both the airlines. Wage arrears, promotions and other related issues need to be resolved before the legal merger process gets under way, they told a ministry of corporate affairs seniorofficial, hearing their case, last month.
The ministry had, in turn, asked the airline managements to respond to worker queries. “An in-principle approval has come; a formal announcement is likely this week,” said a top official at the ministry of civil aviationpreferring to remain anonymous pending the formal announcement.
21/08/07 Tarun Shukla/Livemint

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Categories: Air India Aug 2007, Indian Aug 2007