Government plays down Jet selling Heathrow slots to Etihad

 The government has termed as “baseless and false” charges that it turned a blind eye to Jet Airways selling its slots in London airport to Etihad Airways, with which it entered into a deal recently. It said it has no role in the allotment of the right of an airline to land at and depart from an airport.

Jet has transferred three pairs of slots to Etihad at Heathrow Airport, which has been confirmed by the Airport Coordination Limited. Etihad had, in April, agreed to buy 24 per cent stake in Jet Airways for Rs 2,058 crore, and the deal is awaiting approval from the government.

In a statement on Monday, the Civil Aviation Ministry said no permission is required from the government for an airline to trade slots. However, it said, Jet Airways has obtained permission from the RBI because foreign exchange was involved in the slot trade.

The Government's clarification came against the backdrop of criticism from a section of MPs who claimed that the slots were owned by the government and the airline sold it without permission and without paying any money. The MPs also alleged that Air India has been consistently trying to operate more flights to London’s Heathrow Airport but is unable to do so due to unavailability of slots. The Ministry said Air India, which had four slots at Heathrow, was currently using only three and the remaining one was leased to Delta Airlines of the US.

  It said the problem arose from confusion over  trading of slots and allotment of international traffic rights to Indian carriers. The slots are permissions to land and depart from a particular airport and such permissions are given by airports to airlines.

“These allegations are absolutely baseless and false. The allotments of traffic rights to Indian carriers and availability of slots at foreign airports are two different matters,” it said.