Jet Airways has bought Air Sahara for $560 million, television channel CNN-IBN reported late on Tuesday night, quoting sources.

The move comes close on the heels of liquor baron Vijay Mallya's announcement on Sunday that he is withdrawing from the race to buy out Air Sahara, given how well his Kingfisher Airlines was doing.

He had also added that he had market information that Jet was going to buy Air Sahara.