Tuesday, August 29, 2006

Expansion or value play at Air Sahara?

Bangalore: Legacy carrier Air Sahara, whose valuation plummeted after an aborted acquisition deal with Jet Airways few months back, is trying hard to build up its worth by aggressively expanding its operations on the domestic and overseas sectors.
“The airline’s image has taken a huge beating after the Jet fiasco. These moves seem to be guided by the airline’s desire to get a good valuation if it is put back on the block,” pointed an analyst.
Early this year (January 18), Jet had clinched an acquisition deal for Sahara at Rs 2,300 crore, but as it waited for regulatory approvals from the government, it go a cold feet after operating Sahara for few months as its subsidiary. It reported ran up a loss of Rs 100 crore during that period.
29/08/06 Praveena Sharma/Daily News & Analysis