New Delhi, Jan. 17: The government today explained to the employees of the two state- run airlines the inevitability of a merger from the perspective of savings which is estimated at Rs 820 crore.

Civil aviation minister Praful Patel assured the employees that the planned merger would neither lead to retrenchment nor any cut in salaries and emoluments.

He said a redressal panel comprising representatives of the ministry, two airlines, department of personnel and department of public enterprises would be set up to address the grievances of the employees in a fair and equitable manner.

The selection and appointment of personnel in the merged entity would be done transparently, he said.

Patel, mandated by the empowered group of ministers (GoM) to hold talks with the employees’ groups, said the merger would enable the new entity to have an integrated footprint in India and abroad.

He said the merger would give the flexibility in financial and capital restructuring through revaluation of assets and cleaning up of financial books.

The meeting was attended by the unions of Air-India and Indian Airlines such as the Air Corporation Employees Union and Indian Commercial Pilots Association.

Besides Patel, civil aviation secretary Ajay Prasad, chairman-cum-managing director of Air-India V. Thulasidas and Indian Airlines managing director Vishwapati Trivedi attended the meeting.

Maintaining that he had sensitised the unions about the merger process and the future of both the merged entity and the employees, Patel said, “We will not upset the applecart. We will strive to resolve all issues fully and amicably”.