Airport rights can be transferred to airline acquirer: Patel

BY A CORRESPONDENT
May 12, 2006
In case of an Indian airline taking over another, all rights so far enjoyed by the acquired airline on non-payment basis like parking bays and landing slots can be transferred to the acquirer, said aviation minister Praful Patel. Patel was replying to a question in the Lok Sabha.

Essentially, this means that the procedure adopted for the transfer of rights in the Jet Air acquisition of Air Sahara now becomes policy. However, the government has also decided that these rights cannot be sold or transferred to another airline. Also, if the rights are not used, the said facilities will be taken over the airport operator or the government, since airport infrastructure is in short supply.

The issue of airport infrastructure had become a serious point of debate during Jet Airways acquisition of Air Sahara. Smaller airlines had complained that they are elbowed out of the airports, when the big boys dominate the market.

The Aircraft Acquisition Committee of the government had allowed for the transfer of airport rights from Air Sahara to Jet when the latter acquired the former.