Turbulence hits Jet, Sahara deal

Mumbai/New Delhi:While Jet Airways firmly played down talk of problems with its proposed $500 million buyout of Air Sahara, it’s clear that all is not well with the largest aviation deal in Indian history.
Delays in securing regulatory clearances have forced the two airlines to extend the timeline for the culmination of the deal. For one, the senior managements of Jet Airways and Air Sahara will meet before March 24, 2006, to decide on the induction of five directors of Jet on the Sahara board.
However, senior civil aviation ministry sources say that the proposal to change the Air Sahara board has been sent to the Home Ministry (HM) for clerance, which is still awaited. And only after that is procured, will the procedure for acquiring the airline be kicked off. The two airlines will also take a decision on the revision of Escrow Account, due to expire on March 24.
Both the airlines had sought approval from the Department of Company Affairs and the Director General of Civil Aviation (DGCA). While Jet Airways has received approval from Dept of Company Affairs for the takeover, Air Sahara is yet to get the approval on the share purchase agreement from the DGCA.
21/03/06 Financial Express

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