Airline M&A policy to be ready soon

New Delhi: With consolidation in the airline segment looking imminent, the civil aviation ministry is finalising policy guidelines on airline mergers & acquisitions (M&As). As of now, there is no firm policy on the status of airport infrastructure and rights vested with an airline in case it is taken over.
The guidelines discussed earlier would be evolved into a draft policy so that it could be incorporated into the comprehensive civil aviation policy which is likely to be submitted to the Cabinet early next year.
The ministry’s policy on M&As seeks to adopt a non-discriminatory approach towards private airlines as consolidation looks imminent.
The draft M&A policy will addresses various issues –– such as the use of airport infrastructure and user rights –– that may arise after an airline takes over or merges with another airline. This would include slots at airports for operating flights, especially during peak hours, right to fly to overseas destinations, hangars, parking bays other infrastructure like check-in counters and ticketing outlets at airports.
15/12/06 Sunny Verma/Economic Times

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