Uncertainty loomed large over the fate of the Rs 2,300 crore (Rs 23 billion) deal by Jet Airways to acquire Air Sahara in the absence of clearance from the Directorate General of Civil Aviation for effecting the buyout and the two sides may consider extending the transaction date beyond March 24.
"Wait till March 24. Then only we can give you some news," Jet executive director Saroj Datta told PTI while exuding confidence that officials of the two airlines will "find a solution" before the expiry of the escrow account (opened by Jet) on March 24.
Sources in the know said that the execution of the deal had been stalled for want of clearance of Air Sahara's application for share-purchase agreement signed by the two sides and change of management.
Jet has already got the requisite clearance from the company affairs ministry for buying out the other airline.
When contacted, Air Sahara president Rono Dutta, who is heading the integration team, declined to comment whether Jet had sought extension of transaction time beyond March 24 and if he was confident about the execution of the deal.
Sahara officials discounted a rumour that Sahara chief Subrata Roy and Jet chief Naresh Goyal would meet on Tuesday to iron out the differences and echoed Jet officials' view that there was no glitch in the execution of the deal. Speculation about the meeting had kept journalists on tenterhooks.
Sources said the issue of extension of the last date for escrow Account would be considered on March 24 as there could be some other issues relating to infrastructure.
Sources involved in the integration process said that as such Jet has prepared a list of engineers, pilots and over 500 cabin crew members of Air Sahara team for absorption in the new integrated entity.
Many of the transfer orders have already been prepared by Jet Airways but have not been delivered for want of total clarity, they said, indicating that as many as 1,800 Sahara officials and staff have already been identified for absorption by Jet.
Asked if there was any pressure on the group for early execution of the deal and if it needed funds for its para-banking operations for complying with Reserve Bank of India guidelines on discretionary deployment of funds by March 31, Sahara spokesman Abhijit Sarkar said: "We have no pressure. It is deliberately being spread by vested interests."
Speculation about the deal turning sour had intensified in the last two days after Jet said in a statement that it had not informed the civil aviation ministry about the buyout.
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