The guidelines will now be sent to the civil aviation ministry for approval. This is likely to happen next week once the civil aviation minister Praful Patel, currently in London, gives his go-ahead.
Still to be approved, the move is being widely interpreted as a step aimed at doing away with a major obstacle in Jet Airways' proposed takeover of Air Sahara. No formal clearance has been given by the DGCA to the Jet-Sahara merger.
FE had, however, earlier reported that the DGCA had already cleared Jet Airways' proposal to take over Air Sahara's aircraft. The new guidelines would also enable the proposed merger of national carriers, Air-India and Indian. According to analysts, such a merger would help the national carriers measure up not only for any domestic competition from the Jet-Sahara deal, but also from international carriers, especially from large airlines like Singapore Airlines, British Airways, Malaysian Airlines and Emirates.
TAXIING BEFORE TAKE-OFF
Allowance of 100% transfer of all assets of one company to the other
Transfer of parking bays and slots
Skids put on their further transfer to a third party
Would also enable the proposed merger of Air-India, Indian
Guidelines, with the ministry's approval, will be the first of its kind for the sector
Mr Patel had earlier indicated that the civil aviation ministry would issue guidelines on M&As in the wake of the impending clearances to the Jet-Sahara deal. The guidelines, if approved, will be the first of its kind for the sector which is currently in the midst of unprecedented growth.