Government accepts proposals on merger of airlines

New Delhi, May 11: The government has accepted recommendations of an Aircraft Acquisition Committee (AAC) that was set up to consider the policy on transfer of airport infrastructure in case of merger or takeover of airlines.

It has been decided that user rights over such infrastructure that are given to an airline on non-payment basis -- like parking bays and landing slots -- may be allowed to be used by airlines that takes over the aircraft.

For all other rights, the terms of lease or sale agreement between airport operator and airline will apply, Minister for Civil Aviation Praful Patel told the parliament today.

User rights will be available which are actually under use by the airline that transfers the aircraft, and that too till the time that infrastructure is under actual use. All other rights will be taken over by government, said Mr Patel.

In reply to another question, he said Indian (earlier known as Indian Airlines) has no plans to add new stations to its existing network due to fleet constraints.

On route dispersal guidelines, Mr Patel said the government has laid down the rule for better regulation of air transport services and taking into account the need of the different regions of the country.

It is up to the airlines to provide air services to specific places depending upon the traffic demand, commercial viability and subject to route dispersal guidelines. The minister said the compliance with route dispersal guidelines are monitored on a monthly basis.

At presently, 72 destinations are covered by scheduled airline services.

UNI