Jet set to buy Air Sahara for $560 million


Nov 15, 2005
The Indian aviation industry is expected to witness the biggest acquisition yet when Jet Airways seals a deal to buy rival Air Sahara at an estimated cost of $560 million.

The move, expected to be finally sealed after deliberations between Jet's chief Naresh Goyal and Air Sahara's Subroto Roy slated for later Wednesday in Mumbai, will make the acquirer the largest Indian airline with a fleet of 90 aircraft.

"We may make a statement in the evening," a Sahara official said.

Jet is already the number one private airline in the country, with a 40 per cent market share in the domestic aviation sector. This would go up to more than 50 per cent after the acquisition, aviation industry sources said.

Air Sahara had said in September that it was looking at opportunities for alliances and partnerships to fund expansion and that its advisers Ernst and Young had put its enterprise value at $750 million to $1 billion.

Hindustan Times
  • Thread Starter
  • Thread starter
  • #2

NEW DELHI: Jet Airways is understood to have signed a deal to buy out with Air Sahara, early on Thursday morning.

The amalgamation will make Jet Airways the biggest airline in the country.

The merged entity will have a share of more than 50 per cent, way ahead of Indian Airlines, which has a market share of 30 per cent.

Saroj Datta, executive director of Jet declined to reply to queries whether Jet has bought over Sahara airlines. A formal announcement is expected to be made on Thursday at the Jet Airways board meeting.

The deal presumed to be of over Rs 2,300 crore was understood to have been signed in Lucknow by Jet chief Naresh Goyal and Sahara chief Subrata Roy.

Goyal, along with his team, flew down to Lucknow on Wednesday evening, canceling scheduled appointments.