Currently Special Secretary and Financial Advisor to the Ministry of Civil Aviation (MoCA), Menon will take over from current incumbent V Thulasidas as Chairman and Managing Director, NACIL, on March 31.

“The airline needs equity infusion... while the figures for this year are yet to be released, the 2006 loss figures for the airlines are indication enough,” Menon told reporters.

Menon, a 1974-batch IAS officer from the Nagaland cadre, said he was expecting some Government support to offset the merged entity’s losses. While the airline ran up losses upwards of Rs 800 crore last year, the figure is expected to go above Rs 1,000 crore this year, pushing the entity into the red even as its privately owned carriers offer tough competition.

Menon also said that the synergy between the two merged airlines was a priority area. “While 60-70 per cent of the merger process should be completed over the next one year, the entire merger will be achieved within two-three years,” he added.

The new NACIL CMD also said that his main objective as the state carrier’s top boss would be to give the customers a new experience on board and to retain their loyalty to the national carrier. Menon added that the merged entity would become more competitive and position itself against reputed international airlines like Lufthansa, British Airways and Singapore Airlines.

Menon said all employee-related issues concerning the ongoing merger would be sorted out amicably. The Air-India employees’ union had threatened to go on a strike earlier this month over some of these issues.

Menon, who was a surprise selection as the NACIL CMD, upsetting current MD Vishwapati Trivedi’s chances, would head the national carrier until his superannuation three-and-a-half years from now, unless there are any further Government orders.

Trivedi will now go to the Ministry of Home Affairs as Additional Secretary after March 31, when he completes his term as NACIL MD.