Wednesday, April 19, 2006

Jet to run Air Sahara as subsidiary

Mumbai: Jet Airways according to chairman, Naresh Goyal has reached an agreement with Air Sahara to extend the validity of Share Purchase Agreement (SPA) by 90 days and during this period the two airlines will continue to operate as separate entities. "Till we get the approval from the Director General of Civil Aviation (DGCA), we will run Air Sahara as a 100 per cent subsidiary. It will be merged with Jet Airways at a later date," stated Goyal. Jet Airways has also extended the term of the escrow arrangement signed between both the airlines. The enterprise value of the transaction remains unchanged at around $500 million.
For running Air Sahara as a 100 per cent subsidiary, Jet Airways would have to secure approval of SPA and change the management of Air Sahara. The New Air Sahara board will have five directors: Naresh Goyal, Javed Akthar, Saroj Datta, Vic Dungca and Vijay Kelkar.
18/04/06 Express TravelWorld
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