Jet to fly Air Sahara as debt-free co

Mumabi: Jet Airways is planning to run the Air Sahara operations as a separate debt-free company without integrating the two balance sheets. Lucknow-based Air Sahara will, however, be rebranded and operated, most likely as a low-cost airline, within a few months.
The Jet management is currently working on plans to invest about Rs 100 crore as capital or loan to Air Sahara, once the acquisition is complete on April 20. An additional amount of around $100 million will be raised eventually, most probably through a private placement of equity for the new company, sources close to the airline said. An official email sent to Jet Airways on the issue remained unanswered.
Route planners in Jet are already reworking the airline’s entire domestic schedule to plan a brand new integrated operation. The aim is to optimise the induction of new capacity when Air Sahara’s 24 planes will be added to Jet’s fleet by this month-end. The new airline will also be used to operate a low-cost service on the Gulf routes, a money-spinner for the public sector trio of Indian, Air India and Air India Express.
16/04/07 Cuckoo Paul/Economic Times

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Categories: Air Sahara Apr 2007, Jet Airways Apr 2007