Civil Aviation Minister bats for M&As

Seemingly taking a cue from the consolidation in the aviation industry, civil aviation minister Praful Patel has decided to support mergers & acquisitions (M&As) in the sector with industry-friendly norms.
Simple rules for the transfer of traffic rights and the right to use airport infrastructure to facilitate M&As in the sector are among the initiatives proposed in the comprehensive civil aviation policy, which will be considered by a group of ministers (GoM) soon.
The move is significant for airlines as several regulatory hitches emerged when Jet Airways took over Air Sahara, triggering consolidation in the industry. With the UB Group’s Kingfisher subsequently picking up controlling stake in Air Deccan and setting the stage for further M&As, Mr Patel’s move could prove crucial in the long term.
The civil aviation ministry’s stand should help M&A deals by making it clear that an airline which takes over another can use the traffic rights of the latter. Parking bays, landing slots, hangars, check-in stands, lounge areas, ticketing areas and office space would also get transferred.
20/06/07 Times Now.tv

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Categories: General Aviation Jun 2007