DGCA, aviation ministry refuse to give assurance on Jet Airways slots issue

By Business standard

Aviation regulator Directorate General of Civil Aviation (DGCA) and the Ministry of Civil Aviation (MoCA) have refused to give any assurance on Jet Airways’ slots issue, in an affidavit to NCLT.

In a joint affidavit to the Mumbai bench of the National Company Law Tribunal (NCLT), DGCA and MoCA stated that “slots allocated to the corporate debtor are not the asset of the corporate debtor and, hence, no mandatory directions in respect of the allocations/reallocation of slots may be issued by the tribunal for the mandatory compliance of the same by the DGCA/MoCA”.

However, any request of the resolution applicant (Jet Airways) for allocation of slots would be considered as per the existing policy and procedure, it added.

On the slots of the grounded airline prior to the Corporate Insolvency Resolution Process (CIRP), the affidavit stated that “allocation of traffic rights for such international air transport services among the airlines is made following due process…”

It added that these rights emanate from bilateral air service agreements and memorandum of understandings signed between India and respective foreign country on the principles of reciprocity and balance of benefits.

Thus, these rights cannot be owned by any airline but are national assets and scarce resource of the country, which have to be utilised with due care ensuring their optimal use at all times, in the interest of the nation, it noted.

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