Question : APPOINTMENT OF DIRECTORS .



(a) whether according to guidelines stipulated by the Director General of Civil Aviation (DGCA), airlines can appoint Directors only with the prior approval of the Government;

(b) if so, the details thereof;

(c) whether the Jet Airways while appointing new Direcors on the Board of Directors of the airline has taken approval from the Government;

(d) if not, the reasons therefor and the action taken by the Government in the matter;

(e) whether post-facto clearance was provided to these Directors as a special case; and

(f) if so, the reasons therefor?

Answer given by the minister


MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF CIVIL AVIATION ( SHRI PRAFUL PATEL )

(a) and (b):- The Scheduled Operator Permit to any airline is issued on meeting the minimum requirements as contained in Civil Aviation Requirements Section 3 Series C Part II. At the time of grant of initial `No Objection Certificate`, the applicant has to submit to the Ministry of Civil Aviation, the particulars of the Directors and Chairman/CEO of the firm, seeking NOC, for security clearance as per the prescribed format. Furthermore, any change in the board of Director or Chairman/CEO at any time shall be intimated to the Ministry of Civil Aviation and DGCA along with the details of new Chairman or Director in the prescribed format. New Chairman and Directors shall be appointed only after their security clearance.

(c),(d),(e) and (f):- The Jet Airways has been taking prior permission of Ministry of Civil Aviation before appointing new Directors. Few instances have come to the notice of Government when airlines including Jet Airways have appointed Directors without waiting for security clearance. These airlines have been strictly advised by DGCA to be more careful and strictly adhere to the guidelines for appointment of Directors. At present all Directors on the Board of Jet Airways are security cleared.