Airlines Deals

Jet Airways, the country’s largest private sector airline, said that it had filed a transfer petition before the Supreme Court. This development comes even as the Mumbai High Court and Lucknow district courts are hearing the arguments on the Rs. 2,300 crores Jet-Air Sahara deal, the Business Standard reported.

Jet said that the decision was prompted by commercial reasons and in the interest of Jet Airways and its family of shareholders and not to extend the time limit of the share purchase agreement to acquire.

The share purchase agreement entered into between Jet Airways and Sahara Airlines was based upon certain conditions precedent being satisfied before the due date, June 21. These conditions related to some permissions being given by the government as well as certain policies relating to mergers and acquisitions of airlines being in place, a statement said. The statement also added that on account of this, the time limits in the share purchase agreement have expired before the conditions precedent has been met.

Jet, while blaming the government indirectly, said the policy changes in key areas have their own time frame while the reform and liberalisation on the aviation sector has been relatively fast paced.