Policy for infrastructure use in airline mergers ready

New Delhi: The Ministry of Civil Aviation has finalized the Policy to be followed regarding the use of Airport Infrastructure in case of merger/take over of airlines and sale/transfer of aircraft. This information was given by the Minister for Civil Aviation, Shri Praful Patel in the Parliament today.
The Aircraft Acquisition Committee (ACC) of the Ministry of Civil Aviation, had in its meeting held on 28th March 2006 considered the issue of policy on transfer of Airport Infrastructure in case of merger/take over of airlines. It was been decided that only the user rights over such infrastructure that are given to an airline on non-payment basis eg.. parking bays, landing slots etc. may be allowed to be used by the airlines that takes over the aircraft. For all other rights, the terms of lease/sale agreement between airport operator and airline will apply.
User rights may be allowed to be used by the airlines that takes over the aircraft only in respect of those rights, which are actually under use by the airline that transfers the aircraft. All other rights will be taken over by Government/airport operator.
The user rights will be available with the airlines that takes over the aircraft only till such time that the infrastructure concerned is under actual use.
The recommendations of the Aircraft Acquisition Committee have been accepted by the Government.
11/05/06 Press Information Bureau (press release)

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