Dismissing media reports, government today asserted there is no move to demerge Air India-Indian Airlines. The merger of the two companies has been approved on first of March, 2007. A spokesman of the Minister of Civil Aviation said in New Delhi today that the decision of the merger was taken after detailed discussions and all agencies of the government were taken on board. <br/><br/>He said the decision was taken to provide an integrated international and domestic foot print to enhance customer proposition and allow easy entry into one of the three global airline alliances. He said, it would also help enable optimal utilisation of existing resources, while providing an opportunity to fully leverage strong assets, capabilities and infrastructure. <br/><br/>The spokesman said the merger also provides maximum flexibility to achieve financial and capital restructuring. This, he said, will lead to improvement in the prospectus of the company and consequently for its employees.