Jet, Sahara headed for settlement

Mumbai: Jet Airways (India) Ltd is close to reaching an agreement with Sahara India Commercial Corp. Ltd, or SICCL, based on which it can pay around Rs300 crore to the latter to end a messy legal battle that has its origins in the April 2007 purchase of Sahara Airline Ltd by Jet Airways, the country’s second largest domestic airline by passenger traffic.
This comes ahead of an important Bombay high court hearing on 2 July. The court told the warring parties on 22 June to settle their dispute, or else it would pass an order.
Jet Airways is also working on a proposal to make some advance payments instead of instalments and is willing to pay some interest to avoid litigation, according to two executives with the carrier.
“Executives from Jet Airways and Sahara India are in discussions to reach an out-of-court settlement. Though the terms and agreements are not finalized, a consensus will be arrived (at) in (the) next 30 days,” said one of the executives. Neither of them agreed to be identified.
“The discussions are progressing towards a settlement, but nothing concrete has happened,” said a senior Sahara India executive, also on condition of anonymity.
The final round of the meetings for the settlement, led by the top brass of both Jet Airways and Sahara India, was scheduled for Monday.
30/06/09 P.R. Sanjai/Livemint

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Categories: Jet Airways Jun 2009