The Hindu Business Line : `Take-offs' aborted at last minute

There are many question marks on why the Jet-Sahara deal fell through but what the scribes are unable to fathom is why the two parties went hyper just about 48 hours before time ran out on the takeover deadline. It was the second time that this was happening.

In March, with just two days to go for clinching the deal, news came that the takeover may not happen as there was no policy in place for aviation mergers and acquisitions. It was widely known then that Jet Airways' main intention in acquiring Air Sahara was to get its landing and parking rights, and without any clarity on that issue, the deal made little sense. Hectic activity over two days then saw the deadline being extended by another three months and the Government, expectedly, put in place a policy for transfer of assets in the case of aviation M&As.

This time too, everything seemed on course till 48 hours to the deadline. The Jet management had moved into Sahara and taken over operations; Jet engineers were servicing Sahara planes and everything seemed in order till whispers took off that Jet would not be interested unless its Chairman was cleared by the government to head the new board. The rest, as they say, is history, but there is no explanation why this issue was not raised in the last three months.

Nonetheless, aviation correspondents are still to figure out if the last-minute stand-off was a ploy to force the Government hand to clear the Jet Chief, Naresh Goyal's nomination or was it an excuse to get out of a deal which to all but the Jet top brass seemed to be a bad one from word go.

Our Bureau