The Hindu Business Line : Govt frames policy on airline takeover

In a move that could facilitate the acquisition of Air Sahara by Jet Airways, the Minister for Civil Aviation, Mr Praful Patel, on Thursday told the Lok Sabha that the Government has accepted the recommendations of the Ministry's Aircraft Acquisition Committee and the policy to be followed regarding the use of airport infrastructure in case of merger or takeover of airlines and sale or transfer of aircraft approved by the competent authority.

"It has been decided that only the user rights over such infrastructure that are given to an airline on a non-payment basis, like parking bays and landing slots, may be allowed to be used by the airline that takes over the aircraft. For all other rights, the terms of lease or sale agreement between the airport operator and airline will apply," he said.

The Minister added that the user rights might be allowed to be used by the airlines that takes over the aircraft only in respect of those rights that are actually under use by the airline that transfers the aircraft.

"All other rights will be taken over by the Government or airport operator."

On March 28, the AAC had considered the issue of a policy on transfer of airport infrastructure in case of merger or takeover of one airline by another.

The latest decision could also benefit the proposed merger of Air India and Indian Airlines.

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