Jet may call off Air Sahara deal

MUMBAI: Concerned over delays in all clearances, including security for acquisition of Air Sahara by it, Jet Airways has shot off a strong letter expressing unhappiness amid possibility of the deal being called off.

Jet chief Naresh Goyal, who has not yet been given permission by the government to join the board of Air Sahara, which he had sought to acquire for Rs 2,300 crore, is in constant touch with his top aides exploring ways for exiting from the deal, sources said.

Saroj Dutta, executive director Jet Airways said in Mumbai, "The deal is on and if there are problems we will look into them."
    
Sources in the Sahara Group indicated that one option would be a further extension of the deadline of the escrow account.

A Jet spokesperson had declined to comment on the issue, while Sahara sources confirmed the receipt of Goyal's letter on June 12 that said the contentious issue was only of security clearance.

Sources said that Goyal was particularly unhappy over a number of issues relating to operations of Air Sahara for which he had signed the acquisition deal for Rs 2,300 crore.

They said that a board meeting of Jet Airways is likely to be called very soon and Goyal, who is in London now, is consulting top officials on the issue.

The board meeting is likely to be convened in a day or two to take a final decision, they said.

The deadline for the escrow account, which was extended by three months in March, is expiring tomorrow. Jet Airways had paid a further advance of Rs 500 crore to keep the deal on.