The mega-merger of state-run carriers Air India and Indian received the final government nod on Thursday, with the Union Cabinet giving a go ahead to the proposal of the Group of Ministers in this regard.
The merger would turn the new entity into a large airline, with a combined fleet of about 120 aircraft and a staff strength of 30,000, capable of taking global competition head-on. The public sector character of the merged airline would continue.
By 2010-11, when all the new aircraft ordered by the two carriers are inducted into the fleet, the merged entity's employee-aircraft ratio would come down to about 200:1, comparable with any major global airline.
While Air India has ordered 68 Boeings, Indian has finalised the acquisition of 43 Airbus.
The Group of Ministers headed by External Affairs Minister Pranab Mukherjee had on February 21 decided to complete the merger process by March 31.
With the Union Cabinet's nod, work on legal formalities of the merger process would begin. This is likely to be completed within the next three months.
Civil Aviation Minister Praful Patel, who has been holding meetings with employees' unions of the two airlines, has assured them that their interests, including employment conditions, wages, seniority and career progression, would be taken care of and a grievance redressal mechanism would be in place to protect their interests.
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