The Jet Airways deal with Air Sahara is on track despite the government's delay in clearing the acquisition proposal.
"The deal is very much on," Jet Airways executive director Saroj K Datta said after an internal meeting of the Jet brass at company chairman Naresh Goyal's residence here today. All directors of the company attended the meeting to sort out issues related to the acquisition and also to chalk out future strategies.
Datta declined to divulge further details. He did not comment on the company's plan to extend the deadline of the escrow account, which would expire on March 24. Jet has set up a special team headed by Datta and vice president (marketing) Gaurang Shetty to take the acquisition proposal ahead.
Sources close to the situation said speculation that the government would not allow Jet Airways to use the parking bays of Air Sahara after the acquisition was baseless.
"Jet Airways proposes to acquire Air Sahara. It has no plans to merge Air Sahara with itself at this point in time. Nothing, except the ownership of Air Sahara, will be changed. Therefore, the speculation is meaningless," they explained.
According to them, the main issue is the delay in government clearance to the proposed representatives of Jet Airways on the Air Sahara board. This might delay the acquisition process, but would not derail it, they added.
Jet Airways will run Air Sahara as its 100 per cent subsidiary to ensure a complete transfer of parking rights, arrival and take-off schedules and domestic and international flying rights.
Meanwhile, the Directorate-General, Investigations and Registrations, has issued a notice to Jet Airways seeking details about the proposed acquisition.
The DGIR, the investigation arm of the Monopolies and Restrictive Trade Practices Commission, is looking into a possible monopolistic situation arising out of the proposed deal.
"We have already received notice from the DGIR on the proposed takeover of Air Sahara. We will also furnish necessary details to the government," said Datta.Do you want to discuss stock tips? Do you know a hot one? Join the Stock Market Investments Discussion Group
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