Jet-Sahara deal may take off: reports

Mumbai / New Delhi, Apr 10 (UNI) There is nothing official about it as yet but Jet Airways is understood to have struck a deal to revive the takeover of Air Sahara, nearly nine months after calling it off.

The agreement, which was reportedly reached during the final arbitration hearings in Mumbai, valued the deal at Rs 1,850 crore.

The amount is less than Rs 350 crore which Jet had offered to pay in January 2006.

Aviation experts were abuzz today that Jet is offering less amount to account for creditors' dues. Jet has already paid Rs 680 crore to Sahara -- Rs 180 crore for reviving the airline and Rs 500 crore as bank guarantee.

When contacted, a Sahara spokesperson declined to comment, saying the talks were on through the arbitration panel. Jet's chairman Naresh Goyal, emerging from the arbitration hearing, also declined to comment, saying the matter is sub-judice.

Jet's counsel told reporters that the arbitration order is expected tomorrow. He did not divulge further details.

It is a tricky situation for Jet, which has a wide range of network in India and it is looking for expansion in a major way as far as the global operations are concerned. Experts say that it would have been better for both Jet and Air Sahara if they had merged before one year.

But at present, there is lot of competition and so it will be really tough going. A proposed merger of government-owned Air India and Indian is also expected to be complete shortly.

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