Jet Airways slots to be allocated to rival carriers: Aviation secretary

The Indian government plans to form a committee to temporarily allocate takeoff and landing slots left vacant by the grounding of Jet Airways flights, a senior official said, a day after the indebted carrier was forced to stop operations.

The vacant slots will be allocated to other airlines, said Pradeep Singh Kharola, India`s aviation secretary, at a press conference in New Delhi. At least 280 slots were vacant in Mumbai and 160 in Delhi, he said, after Jet Airways - once India`s largest private carrier - ended all operations on Wednesday evening after failing to secure further loans from lenders.

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Airlines are in touch with lenders to lease grounded Jet Airways planes, which are likely to be taken up by local airlines including state-run Air India, which is also in talks with lenders, Kharola said. A bidding process is underway for a stake of up to 75 percent in Jet Airways, which is saddled with roughly $1.2 billion of bank debt. Kharola said there is "keen interest" from bidders. Top bosses of airlines have assured they will keep fares at reasonable levels, he added.