Air India's IPO only after integration

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National carrier Air India is unlikely to launch an initial public offer before 2009 until full integration of the two merged state-run airlines, but it may give stock options to employees ahead of the issue.

"Our consultant, Accenture, has given a 12-18 month road-map for full integration of the merged identity and an IPO is unlikely to take place before then," Air India's Chairman, V Thulasidas, said..

However, a proposal to offer stock options to its 34,000 employees may fructify ahead of the IPO and a concept paper for this purpose has already been submitted to Civil Aviation Ministry, he said.

The two airlines, Air India and Indian, were merged in July-August this year and 12-18-months for full integration would mean that an IPO would not take place before mid-2009, Thulasidas hinted.

If the recommendations of the concept document are accepted, it is quite likely that ESOP could be given before the IPO, he indicated.