Wednesday, March 22, 2006

No headway in Jet-Sahara deal

Mumbai: The delay in clearance of Air Sahara's application for share purchase agreement by the Director General of Civil Aviation has become a major stumbling block for Air Sahara’s acquisition by Jet Airways with the top brass of both the airlines working on a strategy to tide over this crisis.
The top management of Jet Airways was busy in deliberations throughout the day at chairman Naresh Goyal’s residence even as speculation was rife that the deal could be reconsidered.
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Jet officials, however, denied such plans and were optimistic that the requisite approvals would be received in due course of time. The Jet-Sahara deal is mired by a number of regulatory problems, including DGCA’s hesitation in clearing Air Sahara’s application for share purchase agreement signed between the two and the change of management.
Both the airlines are facing a dilemma to decide on the future action for the Rs 2,000 crore Escrow A/c floated by the two for the buyout. The account is set to expire on March 24 and the requisite approvals have to come before this date.
22/03/06 enenseconomicbureau/Indian Express