Thursday . June 20 . 2019
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Jet Airways buys Air Sahara
Sim Kok Chwee, Singapore  (2006-01-20)

IN a joint statement, Jet Airways India chairman, Mr Naresh Goyal,  and his counterpart in Air Sahara, Mr Subrata Roy, have confirmed that a deal has been reached in Lucknow for Jet to acquire the entire capital of Sahara Airlines for around US$500 million.

Both airlines will continue to operate independently until regulatory approval is received and Jet will pay for this acquisition entirely in cash. Jet has also undertaken to absorb suitable employees (of Air Sahara) based on requirements and performance.

With this acquisition, Jet becomes the only airline other than state-own Air Indian and Indian Airlines to be allowed to operate on international routes and it is also expected to boost its domestic market share from 40 per cent to about 50 per cent.

Reacting to the announcement, Mr Vijay Mallya, CEO of Kingfisher Airlines said: "It will not affect Kingfisher. The combined entity might have a market share of more than 50 per cent. I am not concerned about it. I wish all the very best to Goyal and Jet Airways." Kingfisher had earlier submitted a bid of US$400 million for Air Sahara and withdrew his offer in early January 2006.

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