Jet Airways set to acquire Air Sahara for $560 million
Looks like the time has arrived for the consolidation of the Indian aviation market. the market has seen a boom in the Indian market with many private budget airlines coming in. now, the incoming news claims that Jet Airways is very close to signing on a deal to acquire competitor Air Sahara. This deal could be worth as much as USD 560 million and would set a record for such a deal in India.
As per incoming reports, Jet’s chief Naresh Goyal and Air Sahara’s Subroto Roy are currently working on settling for the terms and conditions for the deal. And Air Sahara is scheduled to make a statement later today. Jet Airways is currently the largest private sector airline company in India and this deal would strengthen their position even further as competition arrives in the form of Kingfisher Airlines and other players.
Jet Airways has a market share of around 40 percent in the domestic aviation sector. The deal with Air Sahara would further boost it to over 50%. Air Sahara has been looking for such an acquisition deal since quite sometime now. Till a couple of days back, Kingfisher Airlines was the frontrunners for acquiring Air Sahara but Vijay Mallya admitted that they found the valuation of the airline company to be much more they had anticipated. As a result, Jet was the only player left in the hunt.
Air Sahara began operations just months after Jet in 1993 and is part of the much bigger Subroto Roy group.