Jet to buy Air Sahara

puneets · Post by **puneets** » Wed Jan 11, 2006 12:27 am

It is being reported that Jet has agreed to buy Air Sahara.

With so many players in the fray, it looks like there will be other consolidations in the near future.

Post by **Dhruv** » Wed Jan 11, 2006 5:09 am

Well Air Sahara was making huge losses and I mean huge. Kingfisher looked at it and it was too large an airline with its losses being too large. Maybe Jet thinks it can turn it around esp as it has a large fleet already and the acquisition won't be as distruptive as it would have been to any other player.

There are really only 4 full service airline in India Jet, Sahara, Kingfisher and Indian. The rest are primarily budget carriers. New airlines keep on popping up and expanding as well. Consolidation is a while away yet in the industry. This was a special case I think because of the bleeding of red by Sahara Air causing grief to the rest of the Sahara empire which isn't doing too well either. Lets see if the new sponsordhip agreement signed with the cricket team is honored or they break the contract and continue with the 300cr deal.

puneets · Post by **puneets** » Wed Jan 11, 2006 5:32 am

I guess that this is just the first wave of consolidations. Though there is a long time before saturation sets in, it looks like there will be a minor shakedown in a few years time. I feel that some of the smaller (budget) airlines will either consolidate (in a sustaining fashion) or will be bought by some of the bigger players.

Air Sahara was indeed making huge losses, and steadily losing market share.
It looks like Sahara housing and construction is one unit which is the cash cow for the Lucknow based Sahara India Pariwar. I haven't looked at the numbers though.

puneets · Post by **puneets** » Wed Jan 11, 2006 1:14 pm

Air Sahara says that the deal with Jet Airways has been called off, according to a private news channel. Official announcement from Air Sahara is expected shortly.

jaydeep · Post by **jaydeep** » Wed Jan 11, 2006 2:04 pm

Here is news in detail ...

No deal with Jet Airways: Air Sahara

No deal has been signed between Air Sahara and Jet Airways, but discussions are on for a strategic alliance between the two private carriers.

Jaydeep.

*sridinats* · Post by ***sridinats*** » Wed Jan 11, 2006 2:46 pm

Well the glitches presently are -:

*Jet is willin to pay 2500 crores but Sahara says they shud pay 3000 crores

* Jet wants control of the management but is willing to retain the Sahara brand name...This proposal is not acceptable to the Sahara folks(as of now)

Sridhar

Sandeep · Post by **Sandeep** » Wed Jan 11, 2006 4:03 pm

Well Air Sahara was making huge losses and I mean huge. Kingfisher looked at it and it was too large an airline with its losses being too large.

It is normal that airlines run into losses initially, but what is unusual is Air Sahara not trying to add more destinations initially. They only started doing it recently after incurring huge losses. But anyways only god knows where from the guy is getting money to spend!!! None of his businesses are doing well.

* Jet wants control of the management but is willing to retain the Sahara brand name...This proposal is not acceptable to the Sahara folks(as of now)

That is obvious as Jet doesn't want to push itself into a status of blacklisted company by merging Sahara. They will probably like to run it as sister company which is managed seperately.

India1989 · Post by **India1989** » Wed Jan 11, 2006 9:44 pm

How come they were running into losses. I thought they were good airlines and one of the best in India.

sunnyd · Post by **sunnyd** » Fri Jan 13, 2006 8:55 am

The Sahara group, and especially the airline, is bleeding money. Business associates have already told me about the numerous problems in obtaining payments for their services from them. In light of this, I was really surprised with the amount of money they agreed to cough up to sponsor the cricket team. I thought the BCCI should have gone with a more financially stable company instead.

India1989 · Post by **India1989** » Sat Jan 14, 2006 10:25 pm

Yup they sponsered the cricket team a lot. But what happens by sponsoring. I don't get it. Like what's the use for the company. It gives money to sponsor a team but does it get any help or any profits or benefits in return.

Sandeep · Post by **Sandeep** » Sat Jan 14, 2006 10:30 pm

Its an advertisement Soumo

Post by **Dhruv** » Thu Jan 19, 2006 8:10 am

Well its a done deal for 2300 crore. http://www.business-standard.com/bsonli ... tono=13268

puneets · Post by **puneets** » Thu Jan 19, 2006 5:24 pm

Now the cricket team's logo will again change..from 'Air Sahara' to 'Sahara'.

India1989 · Post by **India1989** » Fri Jan 20, 2006 10:05 pm

So Air Sahara is no more. Wow i thought that they were one of the best airlines in India. but i guess I was mistaken.

puneets · Post by **puneets** » Fri Jan 20, 2006 10:12 pm

They are still there. Its just that Jet Airways will now have to decide whether to scrap the name "Air Sahara", or continue with it. Most probably they'll realign their business strategy and use Air Sahara (or change the name) to compete with the likes of Deccan, Paramount, Go-Air, Indi-go and Spice Jet; and keep Jet in the high end travel market to compete with Kingfisher and Indian.