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Aseem


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S2 Part-2
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posting the same news article that was the very end of earlier S2 thread


Air Sahara for sale, yet again


MUMBAI: Bolstered by a revival in its fortunes last quarter, the promoters of Air Sahara are believed to be considering a sale of the airline once again. After parting ways with Jet Airways, the Sahara group has attempted to turn around the airline. The current quarter has shown a sharply improved performance and the Sahara group promoters believe that it will be a good time to scout around for buyers.

People close to the development said the promoters are convinced that the airline will have to be sold and that an in-principle decision has already been taken on the issue. The sale process has not yet begun and will commence formally only after the current quarter of profitable operations, they added.

A senior Sahara group official refused to comment on the issue. But sources close to the issue said the transaction is likely to be structured in a way that all the risk and liability arising from the litigation with Jet Airways belongs to the seller, Sahara group.

Buyers likely to be interested in the Lucknow-based airline could be the same corporate groups that had shown interest a year ago. Several private equity groups and the UB group’s Kingfisher Airlines were in negotiations with Sahara before the airline was sold to Jet Airways. For the airlines, the value was in the slots, parking bays and operations of the airline, while for the
financial investors it was the exposure to the Indian aviation market.

However, the appetite for airline stocks has reduced significantly in the past one year as airlines have run up huge losses. The Indian airline industry is expected to lose about $300m by the end of this financial year. Also Air Sahara, which enjoyed a 12% market share in the domestic market before the tie-up with Jet Airways, is now trying to win back some of the market. The airline is planning to expand its international network to Bangkok and Kuala Lumpur.
Salaries of staff were hiked to stop the attrition. This has also led to improved fleet utilisation. Air Sahara aircraft which are used for nine-and-a-half hours at present will be put into service for twelve-and-a-half hours by March.
Meanwhile, Air Sahara has also filed a Rs 2,000-crore claim against Jet Airways for non-completion of the agreement entered into by the two. The claim was filed in London last week, with the three-member arbitration panel.
The panel, headed by British judge Lord Stein, will come out with an order binding on both parties by March ’07. The claim is based on the cash loss it incurred and the depreciation in its value because of the $200-m buyout deal falling through.
Economic Times
Its seem it is nobody but itching Mallaya who is luring Sahara Shri again.  Considering IT's own much hailed model is not working in domestice sector, its itch to fly abroad is understandable.  Considering this second act of buying S2 cannot be a tactic to pressurize govt to relax rules, I'd presume the motion to reduce time before one can fly abroad is not moving as fast as VM wants.  Thus, actively looking for alternatives.
Just note couple of news going around about KF, and you'd see a pattern.
1. IT going in loss and ticket priced higher than IC and 9W.
2. New wide-bodies arriving in not do distant past.
3. No concrete news about waiting time to fly abroad news being reduced.
4. VM roping a consultant to register airlines in US.
5. This chatter of somebody willing to buy S2 all over again.
 
All of them point to one thing that VM is having sleepless nights.
rgds
VT-ASJ
 

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the_380


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The greatest need for VJM from S2 is the intl routes that it'll get. 9W wanted to take over S2 for the same. However when it got its own permissions it feels it useless to take over S2.


Same with IT assuming ITgets intl routes tomorrow even they'll dump the deal



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malik


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Having flown a bit of S2 and 9W lately, I observe that more of the S2 aircraft are being moved to the single-class full-service airline concept, with food on board reaching the "simpler but better" levels. In fact, plastic cutlery and disposable casseroles are fine by me if the salad is fresh and the roti-daal-subzi-chicken-chawal combo is tasty.


Which is more than what one can say about food onboard 9W in Economy lately.


But what does S2 end up selling?


Personally, I wish they would continue, having been an S2 loyalist and getting there again. Despite the B-737 over A-320 argument that takes me to Indigo now and then.



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VABBy


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 Well i am a Diehard Sahara Loyalist so thought will add few points too


 As far as meals are concerned all those airlines planning to cash upon tasty meals on something really special have to be contended with little but no extra options thanks to Indian Govt policy of not serving booze in domestic flights. Hence even a classy airline might nt be that successfull  thanks to the restrictive policy..


The greatest usp of S2 which makes me go towards them again and again is their affordability. With biz class coupons priced at INR7500 per sector is virtually a steal.


Secondly since the airline is based in DEL they also get my vote..Lol sorrie guys for bringing regionalism into this bt then its an airline of the north.


It wud be sad to see the airline die. They are coming back real well and i am sure they can do much better than what they aspire too



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VABBy


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AIR SAHARA TO LAUNCH NEW FLIGHTS & TIE UP WITH INDUS AIR


NEW DELHI: Air Sahara on Friday said it is in talks with upcoming low-cost carrier Indus Air, promoted by Kapil Mohan of Mohan Meakins Group among others, for a strategic tie up, including providing pilot, engineers and maintenance support. "We have been approached by the Indus Air for certain support. They need some help," Air Sahara President Alok Sharma told PTI here. He said Air Sahara is open to such strategic alliance, which could be operational or marketing support. "We could provide pilot, engineers and maintenance facility to the Indus Air. They need support for the CRJ aircraft of the Bombardier," Sharma said. Indus Air, which is expected to start is service soon and it already has got a CRJ aircraft. Currently Air Sahara and Indus Air were in talks with the Director General Civil Aviation (DGCA) seeking permission for such kind of arrangement, he said adding under the current conditions, the approval would not be a problem. Such arrangement would mean an additional revenue stream for Air Sahara, which is trying to consolidate its business after takeover deal by Jet Airways fell through. The Lucknow-based airline currently operates 134 daily flights and had recently increased seats to 17,000 from 12,000. In the next two months, it will add two new routes on the Raipur and Amritsar routes, while on the international front, the airline is expected to soon announce two new destinations.


http://economictimes.indiatimes.com/articleshow/710450.cms



-- Edited by VABBy at 22:30, 2006-12-04

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