Kingfisher Airlines no longer interested in Air Sahara
Liquor giant Vijay Mallya owned Kingfisher Airlines has finally revealed that they are no longer interested in bidding for the fellow competitor Air Sahara for a larger slice of the Indian aviation market. They had been trying to get the deal completed but have finally pulled out of the race for a major stake in Air Sahara after receiving cold response from the owners of the airline company.
The other company interested in such a deal is Jet Airways, which now might have an upper hand in the hunt for a 100% stake in Air Sahara. Air Sahara connects to 24 domestic and four international destinations with 134 daily direct flights. More importantly, they offer around 13,900 air travel seats on a daily basis. Mallya said in a statement that they no longer want to get a stake in Air Sahara as they themselves are doing well on their own.
Mallya added: â€œWe are now planning to introduce first-class services from March-end or April. At this moment, Kingfisher is not interested in Air Sahara.â€ The problem for Kingfisher Airlines was that they considered the price suggested by consultant Ernst & Young overvalued. Ernst & Young had put the value of Air Sahara at $750 million. Kingfisher Airlines had offered $400 million. Jet Airways on the other hand are already the biggest bidders with an offer of $550 million.
However, a spokesperson for Jet Airways has also said that they are also not interested in Air Sahara. A senior Jet Airways executive said in a statement: â€œOur chairman Naresh Goyal had earlier clarified that Jet was not interested in Air Sahara. We are busy with our fleet and route expansion, and are not aware of any such developments on Air Sahara acquisition.â€
It has all become a bit messier considered now even low-cost carrier SpiceJet claims that they might be interested for a stake in the company. A SpiceJet representative said in a statement: â€œIn the wake of severe shortage of pilots, human resources will be the main attraction in taking over Air Sahara for Jet. At one shot, the acquirer will get cabin crew and other supporting human resources with existing routes.â€