Tuesday, January 3 2006 16:32 Hrs (IST) - World Time -

Mumbai: Air-India was awaiting report of its advisor to the proposed IPO, which would partly finance acquisition of 68 aircraft from Boeing company at an estimated cost of Rs 35,000 crore, Chairman and Managing Director V Thulasidas said here today (Jan 3,2006).

DSP Merrill Lynch, appointed advisor to IPO, would soon submit its report to Air-India following which the proposal would be forwarded to the Union Government for its approval, Thulasidas told reporters on the sidelines of a press conference organised by the airline to announce the 'Gourmet Flight', mid-air food festival, on Mumbai-London sector.

"I am sure the IPO will happen in 2006", he said.

On the proposal to grant employees' preferential shares in the forthcoming IPO, he said, "Employees stock option is one of the elements of the whole IPO and I am waiting for the advisor's report on how to go about it."

Thulasidas was non-committal about the date on which the deal with Boeing company would be signed. However, he indicated that he may talk about it on January 11.

The Air-India Chairman refused to disclose the amount of IPO the airline proposed to raise.

About Air Sahara lowering tarrifs on the Mumbai-London sector, he said it is normal practice among airlines to give introductory fares or discounted fares on international routes.

To a question about shortage of pilots, Thulasidas said the national carrier had adequate number of pilots with no real shortage.

"We shall keep on adding more aircraft to our fleet and continue to recruit", he added.