Friday, April 13, 2007

Jet Airways, once again on a deal to buy Air Sahara

Jet Airways is again on deal with Sahara regarding the purchase of Air Sahara. It is to be noted here first that earlier they had a deal in which Jet Airways was to buy Air Sahara, but for some reasons Jet had 'abondoned' the deal.

Jet Airways

This time the deal is of 14.5 billion Rupees, which is about 34% less than the earlier deal. This price includes 5 billion rupees that Jet had paid its smaller rival last year as a bank guarantee pending an acquisition, as well as 4 billion rupees that Jet will pay on or before April 20, as said by Harish Salve, a legal counsel for Jet.

While the balance is to be paid in equal, interest-free annual installments from March 2008 to 2011. "It's cheaper than last year's price, but it's not exactly cheap even at this price," said Hemant Patel at Enam Securities, who has a 'sell' rating on the stock.

However, it has not been declared whether operations of the two airlines would be merged or if Sahara would be relaunched as a discount carrier, as some local media reports have indicated.
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1 comments: on "Jet Airways, once again on a deal to buy Air Sahara"

Joel said...

I think is a very good step indeed, it will also increase the prestige and recognition of Jet airways as well as their business