Wednesday, August 16, 2006

Jet, Sahara deal on, off, on again?

Bangalore: The now-on, now-off Jet-Sahara deal is back in news with speculations of both airlines trying to work a way out of the messy litigations they are currently entangled in.
Despite a vehement denial from the spokespersons of the two airlines, industry sources say the two warring carriers are realising how damaging the legal battle is proving to their commercial operations.
Around Rs 2,000 crore of Jet Airways is stuck due to the breakdown of talks between the airlines. Of this, Rs 1,500 crore is in an escrow account, and another Rs 500 crore that it had paid to Air Sahara as guarantee money is also held up.
The legacy carrier has also lost Rs 180 crore on running the latter’s operations for over three months, while it awaits regulatory approvals from the government.
15/08/06 Praveena Sharma/Daily News & Analysis

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