Jet Airways To Buy Out Air Sahara For Rs 1,450Cr

New Delhi: Air Sahara has finally landed on Jet Airways runway, ending nearly 10 months of dispute between the two airlines. Billionaire Naresh Goyal-promoted Jet Airways on April 12, declared that it has agreed to take over Air Sahara in an all-cash deal for Rs 1,450 crore, which is about 40 per cent less than the Rs 2,300 crore that Jet had agreed to pay for the acquisition in January 2006. The two airlines, after two days of closed-door negotiations in a five-star hotel in Mumbai, submitted the re-worded sale buy out pact to the three-member arbitrators committee. While Rs 500 crore has already been paid to Sahara after the first pact was signed between the two in January 2006, Jet will be paying another Rs 400 crore on or before April 20. The remaining Rs 550 crore will be paid in four equal annual and interest-free instalments during the next four years ending 2010-11 starting on or before March 30, 2008. At the current interest rate, the Net Preset Value of the lumpsum price was in the vicinity of Rs 1,200 crore.