The new firm to be created by merging the two public sector carriers Air India and Indian would be registered under the Companies Act within the next fortnight, official sources said on Friday.

A day after the Union Cabinet gave a go ahead to the proposal to merge the two state-run carriers, the sources said while it would take about 16 weeks to complete the major legal, technical and procedural formalities, as the first step, a new company would be incorporated under Sections 391-394 of the Companies Act of 1956.

Before the registration, which would be carried out in the next two weeks, the two airlines would be formally informed about the government decision, they said.

The government proposes to register the new airline firm as a hundred per cent government-owned public company, keeping in mind the Cabinet decision to maintain the public sector character of the new merged entity.

Merged airline to take shape in 4 months: Patel

However, the actual amalgamation and integration process would be carried out in phases over two years, especially to cater to the integration of the combined work-force of over 30,000.

"It is estimated that this decision would result in the net benefit of Rs 600 crore at the end of third year of merger," Civil Aviation Minister Praful Patel told both Houses of the Parliament.

"The technical and procedural formalities for merging the two airlines would begin immediately and one company with one name, one brand, one logo, one code and single financials is expected to be in place within the coming 16 weeks", he said.

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