Jet Airways and Air Sahara look set to draft a new share purchase agreement for India's biggest civil aviation deal. This is because the Directorate-General of Civil Aviation is dragging its feet on clearances even though the share purchase agreement ends on Friday.
DGCA clearances include sharing of parking bays at airports, gate permissions and flying rights. Top executives of the two airlines would meet in a couple of days to renew the agreement, sources close to the developments said.
The other issues to be taken up are the Rs 2,000-crore Jet Airways fund parked in an escrow account with the ICICI Bank and the proposed induction of five directors of Jet Airways into the Sahara Airlines board.
Jet Airways Chairman Naresh Goyal, who called an internal meeting of the company at his residence in the city, said, "There is no problem in the deal. The DGCA approval on Sahara Airline's request is awaited. Sahara hopes to get it soon."
Jet Airways' Executive Director Saroj K Datta, who attended the meeting, said the escrow account created for the proposed acquisition of Sahara Airlines would expire on March 24. The norms permitted an escrow account to remain valid for 65 days, he said.
"Both the companies have to sort out these issues, including future strategies. But the deal is on track," Datta asserted.
DGCA officials had earlier said there was no policy yet to allow trading of Sahara's infrastructure rights, even after ownership changes. But Jet Airways executives said this would only lead to a marginal delay in the acquisition process.