The now-on, now-off Jet-Sahara deal is back in news with speculations of both airlines trying to work a way out of the messy litigations they are currently entangled in.
BANGALORE: The now-on, now-off Jet-Sahara deal is back in news with speculations of both airlines trying to work a way out of the messy litigations they are currently entangled in.
Despite a vehement denial from the spokespersons of the two airlines, industry sources say the two warring carriers are realising how damaging the legal battle is proving to their commercial operations.
Around Rs 2,000 crore of Jet Airways is stuck due to the breakdown of talks between the airlines. Of this, Rs 1,500 crore is in an escrow account, and another Rs 500 crore that it had paid to Air Sahara as guarantee money is also held up.
The legacy carrier has also lost Rs 180 crore on running the latter’s operations for over three months, while it awaits regulatory approvals from the government. “There is some softening of the stance from both sides. It is but natural that both want some clarity on the way out.
However, no course has been worked out. Neither have they discussed the issue nor appointed any mediators,” said a source close to Jet Airways.
However, Jet Airways executive director Saroj Datta flatly dismissed it as “speculations”. An Air Sahara spokesperson said, “These are baseless rumours. In fact, in a day or two, we are planning to launch two new sectors.”
Air Sahara vice-president, marketing, Alok Sharma said the company would be issuing a press statement on the issue. He, however, evaded a pointed query on whether the estranged airlines are back to the negotiating table or not.
Recently, the market was abuzz with talks that the two airlines were trying an out-of-court settlement by Jet paying an exit fee of around Rs 180-250 crore to Sahara.
In June, Jet’s consolidation move fell through after it backtracked from a Rs 2,300-crore acquisition deal inked with Sahara in January due to valuation differences.
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