Jet-Sahara deal will have to wait
Govt will soon put up draft guidelines on Net for public debate on takeovers.india Updated: Mar 31, 2006 05:04 IST
The Civil Aviation Ministry will prepare detailed guidelines on 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 merger and acquisition: Air-India with Indian (Airlines) and Jet Airways’s acquisition of Sahara Airlines.
Ministry sources said officials from the Directorate General of Civil Aviation (DGCA), Civil Aviation Ministry, Airports Authority of India and Finance Ministry met 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 draft guidelines on the Net to invite 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 had given an in-principle approval to the Jet-Sahara merger, Saroj Dutta, executive director, Jet Airways, 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.
First Published: Mar 30, 2006 18:34 IST