Thursday, March 16 2006 16:54 Hrs (IST) - World Time -

Mumbai: In the wake of Jet Airways'cquisition of Air Sahara drawing flak following allegations of its monopoly on a few domestic routes and use of aircraft parking space, the Government today hinted at coming out with new policy guidelines for mergers and acquisitions in the sector.

"We are forming the guidelines for mergers and acquisitions and this would be finalised soon this would be followed by a comprehensive policy on civil aviation," Union Civil Aviation Minister Praful Patel told reporters here.

However, he refused to give time frame for announcing the guidelines and the policy.

The statement by the minister came hot on the heels of allegations from a few airlines which had suspected creation of monopoly by the country's largest private airline JetAirways after it acquired ailing Air Sahara in an all-cash deal of USD 500 million, creating over 50 per cent market share for Jet.

Recently, the Monopolly Restrictive and Trade Practises Commission had sent a letter to the airline asking whether this acquisition would lead to a kind of monopoly by the Jet in the Indian skies. An MRTPC team is likely to come up with a report in the next couple of weeks.

The Government is framing the civil aviation policybased on recommendations made by Naresh Chandra Committee and Roy Paul committee on Air Traffic Management.

The ministry had already prepared the draft guidelinesfor the policy and recently the draft was submitted to the Prime Minister.