The Hindu Business Line : Aviation policy cannot be changed: Patel

The Minister for Civil Aviation, Mr Praful Patel, said on Wednesday that the Government had a policy on merger and acquisitions in the aviation sector that was based on best international practices.

"Broadly there is a policy in place on M&A in the aviation sector. The M&A policy that was released in May, however, cannot be tailor made to suit the needs of any particular airline. If some one is not satisfied (with the policy) then the Government is not responsible," said the Minister. Furthermore, if anyone had "any grievance" about the policy then they could approach the Government for clarifications.

The statement comes a day after Jet Airways claimed it decided not to go ahead with the acquisition of Air Sahara as certain conditions relating to permissions from the Government as well as some policies relating to M&A were not in place.

However, by late this evening, Jet Airways issued a statement clarifying that there was no question of "blame". "The deal was based on some assumptions which were in turn made condition precedent. Since these did not materialise, the deal lapsed. In such a situation, there is no occasion to blame any one or any agency."

In January this year, Jet Airways had announced that it was acquiring Air Sahara for $500 million.

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