The remaining amount is to be paid in instalments, the counsel for Jet Harish Salve said.Jet informed the Bombay Stock Exchange that it has agreed to acquire "all shares of Sahara Airlines Ltd for a lump sum price of Rs 1,450 crore.
Previously, Air Sahara was a “full-fare airline” brand, but Jet Airways made Air Sahara a “discount airline” brand with some special features. Sahara Airlines flew to major Indian cities and a few international destinations. Until then, the Indian civil aviation agency did not allow private Indian airlines to fly to SAARC, or South Asian Association for Regional Cooperation, countries without restrictions. Therefore, it won't be wrong to say that mergers and acquisitions in case of airlines is a risky bet. The whole company was bought and brought under jet Airways. In April 2007, after several negotiations, Air Sahara was finally acquired by Jet Airways for $340 million. However, many train travelers liked the new airlines’ competitive pricing, reserved seating, frequent flyer programs and faster travel times, so they opted for flying.Sahara Airlines slowly expanded its routes within India. "The deal was signed after the panel comprising British Judge Lord Stein and Supreme Court Justices S P Bharucha and Jeevan Reddy, vetted the draft proposal prepared by Jet and Sahara. The Jet Airways has agreed to buy out Sahara Airlines for Rs 1450 crore. They also renamed Air Sahara “JetLite.”As a fully owned subsidiary of Jet Airways, JetLite currently offers "no-frills" flights to 26 destinations in India and two destinations outside of India. A short history of hope and distress in a highly competitive market over the last 30 years. She graduated with honors from Baylor University in Waco, Texas. Why Is Jet Airways Failing? "While Rs 500 crore has already been paid, Rs 400 crore is payable immediately no later than April 20. Soon after the deal was signed, a beaming Naresh Goyal, said: "It is a good deal which is going to help us.
Sahara Airlines is now lost in oblivion and Jet Airways is heading on the same path.
The balance of Rs 550 crore is payable in four interest free annual equal installments commencing on or before March 30, 2008." The deal is commercially viable since we are getting a lot of infrastructure and manpower - areas where India is facing a lot of pressure now. Jet Airways Chairman Naresh Goyal said this price represents a 40 per cent discount to the originally agreed price.All shares of Air Sahara is to be transferred to Jet on payment of Rs 1,450 crore inclusive of Rs 500 crore (Rs 5 billion) already paid by Jet. The airline business has not changed so dramatically... the deal makes complete economic sense. She has worked as a consultant writer and editor for over eight years for a variety of corporate and non-profit clients. Legal Issues Jet Airways and Air Sahara made a pact outside the court that all the contingent liabilities has to be borne by Air Sahara itself. Also, the Indian Aviation Board refused to give regulatory approval for the merger.In April 2007, after several negotiations, Air Sahara was finally acquired by Jet Airways for $340 million.
In 2001, the airlines was rebranded and restructured by its owners with the new name “Air Sahara.” Air Sahara flew to about 20 destinations and controlled about 12 percent of India’s domestic flight market during its peak as an independent entity, according to BBC News.Several private airlines such as Air Sahara, Jet Airways, Kingfisher, Air Deccan, East-West and others started after the aviation deregulation period in the early 1990s. Air Sahara Flight.