The group of ministers headed by external affairs minister Pranab Mukherjee had on February 21 suggested completion of the merger process by March 31.

Legal formalities of the merger process would begin soon and are likely to be completed within the next three months.

Civil aviation minister Praful Patel has, meanwhile, assured airline employees that their interests, including employment conditions, wages, seniority and career progression, would be taken care of and a grievance redressal mechanism would be in place to protect their interests.

According to the report submitted by consultancy firm Accenture, there will be no manpower rationalisation as the consultancy has suggested 'careful integration' of manpower at various levels. It has also suggested a top-to bottom integration of the employees. It is proposed that the pay scales be revised to bring parity in promotion procedures.

The merger would create a new airline with a combined fleet of about 120 aircraft and an employee strength of 30,000. The merged entity would continue to be a public sector company.

The two airlines, meanwhile, have separate plans for strengthening their fleet. While Air-India has ordered 68 Boeings, Indian has finalised the acquisition of 43 Airbus aircraft.

By 2010-11, when all the new aircraft ordered by the two carriers are inducted into the fleet, the merged entity's employee-aircraft ratio would come down to about 200:1, comparable with any major global airline.

While both companies have more or less equal amounts of assets, asset sharing of the two companies will be on the basis of the models that the cabinet finally approves.

However, all depends on the model that is chosen as both carriers have accumulated tax losses, but AI has more.

According to a member of the core group that had prepared the  merger report, the roadmap had been prepared after studying eight models of merger across the globe including that of Lufthansa.