Domestic aviation industry set consolidation, says Air Sahara chief

13 Apr 2007

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New Delhi: With two mergers in the airline industry already in motion, that of Air India-Indian and Jet Airways-Sahara, speculation is afoot whether size is going to be the new determinant for survival in the domestic aviation industry.

Talking about the Jet-Sahara merger, Air Sahara president Alok Sharma said, "It's a win-win deal for both airlines. The industry was set to see consolidation. An industry that is ill is not in the interest of the nation or the consumer." Sharma was speaking soon after the Jet-Sahara deal was officially announced.

Post-merger, Jet and Sahara would have a combined domestic market share of about 33-34%. "The two mergers — AI-IA and Jet-Sahara — will change the contours of the industry in the coming years," Sharma added.

He put aside any fears about the transaction running into regulatory problems saying that government approvals for the deal were already in place. Hr clarified that apart from Air Sahara's flying rights and parking slots, Jet would also get to use the 10 Boeing 737 aircraft for which Sahara had placed orders. The Air Sahara brand would be retained by the Sahara group, however.

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