Friday, January 28 2005 15:59 Hrs (IST) - World Time -

New Delhi: Public sector carriers Air India and Indian Airlines are preparing for their Initial Public Offers (IPO) by the next fiscal to fund their fleet-acquisition programmes and enhance debt-equity ratio.

"We have told the airlines to start working towards that end. It will take some time and the two airlines could launch the IPO in the later part of 2005-06," Civil Aviation Minister Praful Patel said in New Delhi.

Replying to questions on the issue, he said that the proceeds of the IPO would be used by the two airlines to finance their fleet expansion plans.

While Jet Airways has already launched its IPO, low-cost carrier Air Deccan has also announced plans to go ahead with its IPO by September 2006.

Asked about the Government decision to set up a National Investment Fund out of disinvestment proceeds, Patel said that the fund had "nothing to do with our scheme of things for the IA and AI... We don't need this (Fund) to infuse equity".

"We plan to use the monies raised from the proposed public offerings by these airlines to fund their acquisition plans and improve their debt-equity ratio," he said.