A-I, IA public floats seen by early 2006

Civil aviation minister Praful Patel said the national carriers are finalising advisors for the IPO.

The government is planning to divest 10 to 20 per cent stake in Air-India and Indian Airlines through initial public offer (IPO) slated to hit capital markets in early 2006.

"Airlines need to expand their equity base for expansion programmes. Towards that the government will reduce its holding in Air-India and Indian Airlines in the range of 10-20 per cent," Union civil aviation minister Praful Patel told reporters here today.

Speaking on the sidelines of a seminar, Patel said the national carriers are finalising the advisors for the IPO.

"These advisors will decide the percentage of the government holding to be divested. The government will appoint IPO advisors soon," he said.

Patel said the country is moving in the right direction by opening up air service. However, the concept of aviation should go beyond metro cities.

"There are several under-utilised and unutilised airports. We should increase the number of people using air traffic," minister said.

Referring to the modernisation programme of Mumbai and Delhi airports, the minister reiterated that the government is firm on the decision and would finalise the tender bids soon.

Employees of the airports are planning to go on strike on 29 September to protest against the modernisation drive. But Patil assured that the proposed programme would not affect the interest of employees.

He also said the Indian companies should diversify and upgrade cargo facilities to meet the future requirements.