New Delhi: With the government clearing the transfer of Sahara assets to Jet Airways, Air Sahara would now operate as a 100 per cent subsidiary of Jet Airways.
According to sources, Air Sahara will operate with a new name. The name of the new airline would be announced soon. When it happens, this is going to be third name change for Air Sahara.
Earlier, Jet and Sahara had extended the term of their share-purchase agreement by 90 days amid doubts over possible merger of the two airlines. The enterprise value of the deal, however, remained the same at Rs 2,300 crore.
Till such time as the merger takes place for which court approval is also mandatory, Jet will run Air Sahara as its 100 per cent subsidiary which will make available all of Air Sahara's parking slots, flight rights and other infrastructural facilities to the former.
Jet Airways acquired Air Sahara for an `enterprise value of $500 million' in January this year. Both airlines had earlier hoped to complete the transaction by end-March this year. However, with no regulatory approvals, they decided to extend the period for the completion of the transaction by three months.
In the last week of March, Jet Airways paid an advance of Rs 500 crore to Air Sahara as part of the buyout package.
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