Thursday, May 25, 2006

Sahara deal: Jet to call new entity Transjet

Mumbai: Jet has set off on a long journey to merge Air Sahara into itself but it will take at least another year. Till then Air Sahara operations will be handled by a separate entity.It will be called Transjet with a separate corporate logo of its own and the company will house Air Sahara's planes, infrastructure and employees.
The logic behind the move is quite simple. Air Sahara was making losses when Jet bought it and the Jet management doesn't want those losses to come on its books right now, especially at a time when Jet's profitability is already under pressure thanks to rising costs and low fares.
But Jet's chief Naresh Goyal who took the gamble of acquiring Air Sahara is confident that he can turn around Sahara's finances by letting it operate under Transjet's control.
24/05/06 Joydeep Ray/Rumi Dutta Hardasmalani/Rediff
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