Jet-Sahara Deal Snags-Mallya may be the solution - Airliners-India

the_380 · Member

Jet-Sahara Deal Snags-Mallya may be the solution

Nimish · Member

VM is the only one to benefit from buying S2 - since he can start his much talked about international service immediately. But he's probably a smart businessman (suddenly Naresh Goyal finds himself out of that equation), and will now enter only in case it becomes a distress sale and he gets S2 on the cheap.

the_380 · Member

If not for international why wud mallya buy such an airline?

Nimish · Member

Mallya's Kingfisher re-enters fray for Air Sahara

From: http://www.hindustantimes.com/news/181_1725112,00020016.htm

Quote:
Vijay Mallya, the flamboyant boss of low-cost carrier Kingfisher Airlines, has once again entered the fray to acquire Air Sahara whose deal with rival Jet Airways has run into rough weather, officials said on Wednesday.

Senior executives of Bangalore-based UB group, controlled by Mallya, have been directed to negotiate with the Subrata Roy-managed Sahara group, even as last minute talks are underway with Jet Airways to salvage the deal, officials added.

...

"It would make sense for Kingfisher to acquire Air Sahara since it would give the carrier access to overseas markets. Kingfisher has ordered some wide-bodied aircraft and needs overseas access to deploy them," an industry analyst said.

...Many potential suitors had stepped forward to strike a deal with Air Sahara, including UB group, which had estimated the airline's worth at $600 million.

Officials explained the proposal had called for UB group paying $200 million upfront in cash, the retention of stake worth another $200 million by the Air Sahara promoters and raising the remaining amount by way of a public issue.

UB was out of the race since Sahara favoured the entire amount in cash and Jet Airways was willing to assure that.

the_380 · Member

Along with mallya even ajay singh wanted Sahara but they r pretty small as compared to Kingfisher

Nimish · Member

the_380 wrote:

Along with mallya even ajay singh wanted Sahara but they r pretty small as compared to Kingfisher

Sorry - who is Ajay Singh and why does he want S2?

karatecatman · Member

Owner /promoter of SpiceJet.

http://www.dnaindia.com/report.asp?NewsID=1034167

No Mahajan money in SpiceJet, says former aide

June 8, 2006

NEW DELHI: A former aide of Pramod Mahajan has repudiated reports that the late Bharatiya Janata Party (BJP) leader helped in funding SpiceJet or that his money was parked in the airline.

Ajay Singh, former officer on special duty (OSD) to Mahajan when he was minister in the Atal Bihari Vajpayee government and currently director of India's newest start-up private airline SpiceJet, sought to set the record straight in an interview with IANS following allegations that he had a bitter falling out with Mahajan.

Just back from a trip to London, Singh said: "That is not true, I just charted my own course of action. Once the general election was over in 2004, I realised there was no role for me. There was pressure on me to get back to business and I helped start up the airline."

"The airline is a public listed company and the investors are well known. As for me, my personal investment in the airline amounts to Rs.100 million," he said.

"SpiceJet was promoted by the UK-based Kansangra family, businessman Sanjay Malhotra and I and began its services in May 2005."

However, Singh, once part of Mahajan's close circle, did not inform the BJP leader of his future plans.

-- Edited by karatecatman at 16:01, 2006-06-22

the_380 · Member

Nimish wrote:

the_380 wrote: Along with mallya even ajay singh wanted Sahara but they r pretty small as compared to Kingfisher Sorry - who is Ajay Singh and why does he want S2?

Ajay Singh is someone is SpiceJet board if not wrong then he is the Director or President of Spice

vivekman · Member

Spicejet is too small too be able to buy Sahara with all its assets and liabilities. Only a person with deep pockets like Vijay Mallya looks geared to buy it.

Aseem · Member

let me throw in something interesting! What is the likelyhood of Sir Richard Branson stepping in?

Nimish · Member

Aseem wrote:

let me throw in something interesting! What is the likelyhood of Sir Richard Branson stepping in?

Not likely given the restrictions on foreign ownership on Indian carriers.

the_380 · Member

SRB wud have been interested in AI, IC or IT or even 9W but not something like S2 its too low for branson to think

HAWK21M · Member

The S2 Losses are too large for small Airline to Take on its self.

Ideal if S2 could run on its own & get back on track.

regds

MEL

the_380 · Member

Thats impossible with its CMD goin underground

HAWK21M · Member

The next few months will determine S2 Fate.

regds

MEL

karatecatman · Member

GoAir wants to buy Air Sahara, that's the latest.

the_380 · Member

GoAir but why what wud it get

VABBy · Member

HAWK21M wrote:

The S2 Losses are too large for small Airline to Take on its self. Ideal if S2 could run on its own & get back on track. regds MEL

While the media bed is hot with speculation as to what Air Sahara would do or be doing . There is one man who thinks he can pull this S2 off and bring it back to where it was and He is Air Sahara President Alok Sharma. Here is an interview which talks about the inside story..

It seems Jet was looking for borrowing money from the market to secure this deal and when they were unable to get a right price they had to call the deal off.

I reckon if this was the real true picture then i guess what can be said for Jet is...

Jaib mei nahi hai dehla aur kharednee chale hai lal quila....

anyways here is the link for the interview

http://www.financialexpress.com/fe_full_story.php?content_id=131749

HAWK21M · Member

Surprisingly How Things sound different when things don't go along to plan.

regds

MEL

vivekman · Member

Guys, someone should get their hands on Air Sahara's occupancy figures over the period during which this whole acquisition drama played out.

It will be interesting to see passenger demaned and opinions on Air Sahara as of today!