Airlines Deals

The government has reacted strongly against Jet airways claim that the deal with Sahara was scuttled because of procedural delays on its part.

On Tuesday, Jet had issued a statement that the Rs 2300 crore Jet-Sahara deal had lapsed because of delays in the government processes.

Civil aviation minister Praful Patel however said its merger policy was in place one month before the deal deadline.

The minister is upset over a Jet Airways’ statement that says the deal fell through because of delays in government approvals. Now Patel has set the record straight.

“A government does make policy to suit a particular airline a broad framework of mergers and acquisition policy was ready by May,” said Patel.

On Tuesday, Jet Airways issued a statement saying the deal expired since they failed to get the necessary approvals before the June 21 deadline.

“Since the commercial transactions have their own time period and as the time limit for the expiry of the share purchase agreement has been reached before the policies and other conditions have been fulfilled. It was decide not to extend the deadline,” said Saroj Dutta, Executive Director, Jet Airways.

Earlier, this week however, Air Sahara had claimed Jet Airways wanted the original amount Rs 2300 crore to be reduced.

“Jet Airways told us they are having financial problems and that’s why they wanted a cut in the deal,” said Alok Sharma, President, Air Sahara.

Original amount

Earlier in the day both Jet and Sahara moved the Supreme Court. Sahara says they want to ensure that their version of events is heard.

Jet’s immediate concern is that the case is heard in Mumbai and not Lucknow where Sahara had originally filed a case against them.

It’s perhaps natural that Sahara and Jet will differ but as they fight one thing is clear the government would not like to be dragged into a controversy.