Airline M&A policy to be ready soon

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.

Broad guidelines were discussed by the ministry when Jet Airways was in the process of taking over Air Sahara in a $500-million deal which ultimately failed. Now that the mega merger of Air-India and Indian is moving forward at brisk pace, the ministry wants to be ready with detailed guidelines on airline M&As.

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