AI-Indian merger after staff comes on board

NEW DELHI: The empowered group of ministers (eGoM) on merger of public sector carriers Air India (AI) and Indian has asked the civil aviation ministry to hold talks with employees of the two airlines before finalising the merger.

���The eGoM has decided to take up the issue of integration of employees in a cautious manner to avoid an unwanted situation and to ensure that their interests were protected,��� civil aviation minister Praful Patel told reporters here. The eGoM approved the proposal by committee of secretaries (CoS) to provide corporate tax breaks and stamp duty waiver for the merger.

Mr Patel said he would hold talks with representatives of the trade unions of both the airlines and take their views to be put forward for consideration in the next meeting of the ministerial group. AI and Indian together have an estimated combined staff strength of 33,000, Mr Patel said.

Meanwhile, the Left is of the view that the government cannot go ahead with the merger without taking the unions on board. ���The move will have serious repercussions on the employees. They have different service conditions in AI and Indian. This has to be taken into consideration before going ahead,��� CPM politburo member Sitaram Yechury said.

The eGoM has also approved the recommendations of the CoS for giving tax exemptions and stamp duty waiver to the merged entity.

According to Mr Patel, the eGoM has approved the CoS proposal on taxation as well as stamp duty for the merger process, which could be achieved by amending Section 72(A) of the Income-Tax Act.