The government has extended the tenure of Vasudevan Thulasidas as chairman and managing director of Air-India. The tenure of Thulasidas, a 1972 batch IAS officer from Manipur-Tripura cadre, was coming to an end on Thursday.

The extension comes when the stage is set for a mega merger between Air-India and Indian. Sources from the ministry of civil aviation said the extension for Air-India chief is in the light of historic merger and $8.1 billion fleet acquisition programme.

A senior government official said, "The MoCA has suggested extension for Air-India chief till further orders, and Cabinet committee has approved it". Air-India office confirmed the development.

While serving as chief secretary for the government of Tripura, Thulasidas was offered the position of Air-India chief. He took charge of the job on December 22, 2003. Thulasidas also served as under secretary in the MoCA, joint secretary, Air (ministry of defence) and tourism director for the Kerala government.

"The government has set a deadline for the merger of Indian and Air-India. The matter will shortly be placed before a Group of Ministers for approval, after which it will be tabled before the Cabinet," a MoCA official said.

The official said Thulasidas would be right person to monitor expansion projects such as Air-India's $8.1 billion fleet acquisition programme, the first of its kind in the Indian aviation history.

Air-India recently took delivery of the first aircraft of its planned order of 68 Boeing jetliners.

Thulasidas, who is the chairman of the Federation of Indian Airlines, said the airline would soon start non-stop flights to the US from various Indian cities.