Jet-Sahara deal will have to wait as govt clears some issues
THE CIVIL Aviation Ministry will prepare detailed guidelines on the issue of the transfer of infrastructure in case of mergers and acquisitions in the domestic aviation sector. As a first step it will seek public opinion from all stakeholders and concerned parties.
THE CIVIL Aviation Ministry will prepare detailed guidelines on the issue of the transfer of infrastructure in case of mergers and acquisitions in the domestic aviation sector. As a first step it will seek public opinion from all stakeholders and concerned parties.
This comes against the backdrop of two impending mergers and acquisitions:
Air-India with Indian (Airlines) and Jet's acquisition Sahara. Ministry sources said officials from the Directorate General of Civil Aviation (DGCA), Civil Aviation Ministry, Airports Authority of India and Finance Ministry participated in the meeting on Wednesday. Civil aviation secretary Ajay Prasad told HT, "The acquisition committee meeting took place on Wednesday."
Sources said the ministry or the DGCA would soon put up the draft guidelines on the Net for inviting public debate. Later, they will come out with the detailed guidelines. "There is every possibility that the Jet-Sahara deal will also be evaluated after the guidelines are enacted," said a source.
While there was talk that the committee has given an in-principle approval to the Jet-Sahara merger, Saroj Dutta, executive director, Jet, denied it. "We haven't heard from the government, in this case the DGCA or the aviation ministry," he said.
The proposed guidelines will address issues like the transfer of ownership or the lease of aircraft, spare parts, insurance, lien, routes and landing slots.
