Mumbai, Jan. 3 (PTI): Air-India today said it is waiting for the adviser’s report on the proposed initial public offering, which would partly finance the acquisition of 68 Boeing aircraft at an estimated cost of Rs 35,000 crore.

DSP Merrill Lynch, adviser to the IPO, would soon submit its report to Air-India.

The public carrier will then forward the proposal for the government’s approval, said V. Thulasidas, Air-India’s chairman and managing director, on the sidelines of a conference to announce mid-air food festival Gourmet Flight on A-I’s Mumbai-London sector.

“I am sure the IPO will happen in 2006,” he said.

On a proposal to grant employees preferential shares in the forthcoming public issue, he said, “Employees stock option is one of the elements of the whole IPO and I am waiting for the adviser’s report on how to go about it.”

Thulasidas was non-committal about the date on which the deal with Boeing Company will be signed. However, he indicated that the deal might come up for talks on January 11.

He also refused to disclose the amount the airline plans to raise from the proposed maiden offering.

Talking about Air Sahara lowering tariffs on the Mumbai-London sector, he said it is a normal practice among airlines to give introductory fares or discounted fares on international routes.

Regarding shortage of pilots, Thulasidas said the national carrier had adequate number of pilots with no real shortage.