International air carrier Air-India plans an initial public offer, IPO 18-24 months after its merger with state-owned domestic carrier Indian Airlines, V Thulasidas, chairman and managing director, Air-India, said today, reports CRISIL MarketWire.
Given that the government is targeting to complete the merger of the two airlines by early 2007-08 (Apr-Mar), Air-India IPO should hit the market by the first quarter of fiscal 2010.
"We are aiming at the IPO within 18-24 months after the merger (with Indian Airlines) is completed," Thulasidas told reporters on the sidelines of EU-India aviation summit. He said the merged entity is expected to offload 15-20% of its stake through the proposed initial public offer.
Thulasidas said a formal decision on the merger is awaiting Cabinet approval. The issue is likely to be taken up on Monday by the Empowered Group of Ministers following which it will be sent to Cabinet for final approval, he said.
He said Air-India had also taken an in-principle decision to join an airline alliance. Joining an alliance will help India's international carrier provide better connectivity to its passengers in sectors where Air-India does not operate.
Thulasidas said the airline was in talks with Star Alliance, One World and Sky Team. "We are in talks with all three airline alliances and will shortly announce the name of the alliance which we join," he said.
