Buyout pact with Jet Airways is over: Air Sahara

New Delhi, June 22: Air Sahara said today its Rs 2,300 crore share purchase agreement with Jet Airways expired last midnight and will now operate the airline on its own.

Jet was not forthcoming with its response.

Sahara's president Alok Sharma said the group will not renegotiate on the price. ''But if they (Jet) want extension of deadline, we are open to increase by another 15 days.'' ''We have not got regulatory clearances and this held back the completion of the deal,'' he added.

Asked whether Jet was sincere about completing the deal, Mr Sharma said the airline could have gone ahead with the deal with four of its members on Sahara's board.

The development came a day after a local court in Lucknow froze an escrow account and prevented Jet from withdrawing the bank guarantee till June 23.

Amid reports that Jet wanted to wriggle out of the deal, Sahara alleged that Jet was looking for a price cut from the agreed Rs 2,300 crore to Rs 1,800 crore.

Jet has paid Rs 700 crore so far to Sahara -- Rs 120 crore as commitment fee, Rs 500 crore as advance and Rs 80 crore towards capital expenditure. While Jet seems prepared to forego the Rs 120 crore commitment fee, Sahara is determined to hold on to the entire amount if Jet reneges on the deal.

The blinding pace of developments -- much behind the boardrooms with little details coming forth -- suggested that the largest and controversial aviation deal episode in Indian skies is likely to linger on in coming weeks and months.

UNI

Related Stories