The Hindu Business Line : `Jetlite board will need Govt nod'

New Delhi April 17 The Board of the new airline to be set up by Jet Airways following the Air Sahara buy out will need to be cleared by the Government before it can start operations.

"A new company is being created and whenever that happens, clearances from the Directorate-General of Civil Aviation (DGCA) is required. Generally, the DGCA gives clearances to the Board after the names have been given security clearance by the Home Ministry," a senior Government official told Business Line. Delay in providing security clearance to the Chairman of Jet Airways, Mr Naresh Goyal, in June last year, resulted in the share purchase agreement for Jet Airways to buy Air Sahara lapsing. Such an eventuality is unlikely now as the Air Sahara buyout has been agreed to after prolonged arbitration and therefore any deviation from the agreed agreement could result in contempt of court.

Asked whether Jet Airways will be allowed to operate the Air Sahara aircraft before the clearance is granted, officials said that this would depend on the Memorandum of Agreements signed between both airlines when the sale was finalised. "The new airline will need a no-objection certificate that would be made available after all dues have been cleared including any outstanding financial liabilities that the airline in its earlier incarnation may owe the Airports Authority of India, " officials said.

While it is still unclear who would be on the board of Jetlite, the 14-member Jet Airways Board has several people from Bollywood including actor Shah Rukh Khan, producer, Yash Chopra and script writer, Javed Akhtar.

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