AI, IA plan 51:49 JV with Abacus

NEW DELHI, MAR 7: AIR India AI and Indian Airlines IA plan to form a 51:49 joint venture with global giant Abacus to market centralised reservation systems in India.

The partners will apply within four to six weeks to the Foreign Investment Promotion Board FIPB to seek the board8217;s approval for the joint venture. While Abacus will put-in an initial capital sum for its 49 per cent stake in the joint venture, the two national airlines will not invest any cash in the venture at this stage. AI and IA will simply offer the assets of the existing Sitar Travel Marketing Agency as their share in the joint venture.

The assets of Sitar are currently being valued for this purpose. Sources in Air India told The Indian Express that though the state-owned airlines plan to pick-up 51 per cent equity, the shareholding pattern is still being debated.