AI/IA merger-- 13 bids; New India gets AI insurance account - Airliners-India

karatecatman · Member

AI/IA merger-- 13 bids; New India gets AI insurance account

the_380 · Member

wow that means a real big airline

but i still doubt this

-- Edited by the_380 at 15:30, 2006-06-02

karatecatman · Member

http://www.thehindubusinessline.com/2006/06/15/stories/2006061503730900.htm

AI may pick consultant for merger tomorrow

Our Bureau

New Delhi , June 14

In a move that is likely to give a fillip to the proposed merger of Air India and Indian Airlines, a sub-committee of the Air India board is scheduled to select a consultant on Friday who would draw up a road map for the merger of the two state-owned carriers.

The sub-committee includes not only the Chairman and Managing Director but also the Director Finance of the two airlines.

In addition, the Chairman of ICICI Bank, Mr N. Vaghal, is also a part of the sub-committee.

The airline, which was mandated by the Ministry of Civil Aviation to seek applications from reputed merchant bankers, financial institutions and management consultancy firms for appointment of a consultant to advise on the merger, is to choose from the seven bids it had received.

"The sub-committee is likely to shortlist a consultant on Friday and the work for creating a road map for one mega airline should be ready within the next three months," official sources said.

Official tight-lipped

While officials were tight-lipped on how the merger would proceed, sources indicated that the current thinking in the Government was to complete the process through a "clean merger" rather than follow the model of having a holding company that could eventually facilitate the merger of the two airlines.

However, a final view on the way forward would emerge only after the consultant's recommendations have been approved by the Government.

The Minister for Civil Aviation, Mr Praful Patel, has already said the merger would be completed by March 31 next year.

The Ministry has also made a presentation before the Prime Minister, Dr Manmohan Singh, who is said to have given his approval for the merger to go ahead.

karatecatman · Member

www.ptinews.com

More details here. AI chief Thulasidass has more information!

Decision on consultant for AI-Indian merger likely Friday

New Delhi, Jun 14 (PTI) A decision on appointing a consultant to prepare the roadmap for the merger of Air-India and Indian is likely to be taken on Friday when a Committee set up by the Boards of the two airlines meets in Mumbai.
The consultant, to be selected from among seven bidders, is likely to be given three months to prepare the roadmap, Air-India Chairman and Managing Director V Thulasidass told PTI in an interview here.
The consultant would also suggest whether, how and when the public sector airlines would enter the market by issuing Initial Public Offer (IPO) to raise resources.
However, the terms of reference for the consultant would be finalised by the respective Boards later, he said.
The Committee set up for selecting the consultant includes the chiefs of both the public sector airlines as well as officials of the Civil Aviation Ministry.
Replying to questions, Thulasidass said broadly two models were being studied for the merger and whether it should be at one go or in phases.
The models primarily being looked at were either to have a holding company for the two carriers or a clean merger. A third option was to have a holding company that would be interim to the merger, he said, however pointing out that a final decision would be taken on the basis of recommendations of the consultant.
Asked whether proposals to hive off engineering and ground handling services of the two carriers would also be considered, he replied in the affirmative and said not only these two services, but decisions needed to be taken on the subsidiaries, Air-ndia Express and Alliance Air, too.
Thulasidass said Air-India’s ground handling was being done by the AI Air Traffic Services, a subsidiary, but a subsidiary for the engineering services was not in place. Similarly, Indian’s Airport Services Limited was also functioning to provide ground handling services.
He said two other areas where subsidiaries could be planned post-merger were information technology and cargo, which could be possible in future.
To questions on how the merged entity would address the HR concerns as both carriers had considerable number of staff per aircraft, the AI chief said: ‘‘While we strongly support the need for merger which has become a must for both the airlines, this problem has to be tackled and that too in an objective and transparent manner where interests of everyone is maintained.’’
He said the consultant could advice on the way out.
Asked about the contractual form of employment in Alliance Air and AI Express, he said that system could continue even after merger.
On the amalgamation of the diverse fleet owned by the two public sector airlines, Thulasidass said the fleet would be deployed as per their size, their capacity to fly and carry load. ‘‘There should be no difficulty in deciding on how to shift pilots or deploy particular kinds of aircraft on different routes’’, he said.

Karan69 · Member

I just hope it is a successful merger and atleast the consultants will realise that AI and IC compete on several routes.

Karan

the_380 · Member

They realised that when they started AIs flight from BOM-DEL to USA and Europe and later when IC started international flights but they didnt do anything for it.

karatecatman · Member

Three consultants for Air-India, Indian merger shortlisted

New Delhi, June 27 (PTI) The Air-India Board sub-committee, which is considering the appointment of consultants to prepare a roadmap for merger of Air-India and Indian, today shortlisted three consortia for the purpose.

The final decision on appointment of a consultant is likey to be taken by the second week of July, airline sources said.

The shortlisted consortia are Accenture with Ambit Corporate Finance; ICICI Securities in association with Deloitte Touche Dohmatsu, N M Rothschild, Centre for Asia Pacific Aviation and M V Kini; and JM Morgan Stanley and AT Kearney with Amarchand Mangaldas.

The three parties would be given the detailed terms of reference to enable them to submit their final technical and financial bids, the sources said.

The Board sub-committee would meet again in July second week to consider these bids and take a final decision on the appointment.

Altogether seven parties made their presentations to the Board sub-committee yesterday and today.

Earlier, Air-India Chairman and Managing Director V Thulasidass had said that the selected consultant was likely to be given three months to prepare the roadmap.

The consultant would also suggest whether, how and when the public sector airlines would enter the market by issuing Initial Public Offer (IPO) to raise resources.

karatecatman · Member

Accenture gets AI, IA merger mandate

tayara mechanici · Member

RE: AI/IA merger-- 13 bids; New India gets AI insurance account