The Hindu Business Line : IA urges Govt not to give Jet `special rights'

Indian Airlines (IA) has asked the Government to exercise caution while allocating airport facilities vacated by Air Sahara, which will be taken over by Jet Airways after the merger of the two airlines.

In a communication to the Government, it has said that no special rights should be given to the buyer of the merged airlines, as Air Sahara "cannot sell something it does not own."

Jet Airways purchased Air Sahara for $500 million in January this year. The agreement is to see the entire aviation business of Air Sahara including some of aircraft leases, real estate (like the lounges run by it), and assets (like auxiliary power units and engines), being taken up by Jet Airways.

The deal, however, is yet to receive the Government's nod.

Further, the airline has said that airport infrastructure leased by an airline should not automatically be transferred to a new airline or merged entity without keeping in mind the needs of other players.

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