Consultants shortlisted for Air India- Indian merger

BY A CORRESPONDENT
July 7, 2006

The run-up to the proposed merger between Air India and Indian Airlines has kicked off with Air India narrowing down its search for a consultant team that is to work out a roadmap for this merger. The three consortia now shortlisted 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.

Airline sources have announced that the final decision is likely to be made by mid-July. After receiving a detailed terms of reference these three teams will be in a position to hand in their last financial and technical bids. The Air India Board Sub-Committee will meet again in the second week of July to review these bids and to make the final selection. The Board Sub-Committee shortlisted three from a group of seven candidates, who had made their presentations earlier last week.

The consultant team finally chosen for the task would be given three months to develop a detailed work plan for the merger, said Air India Chairman and Managing Director V Thulasidass. They would also be required to suggest the possibilities and implications of the public sector airlines entering the market in order to issue public equity for fund raising.