New twist in the Jet-Sahara tale?

21 September 2006

Jet Airways claims that it was the lack of government approvals that led to its deal with Sahara to collapse. But CNBC-TV18 learns that there were other "disturbing facts" that may have prompted Jet not to extend the deal deadline.

Jet hasn't come clean on why it terminated the agreement with Air Sahara apart from citing the lack of government approvals.

But CNBC TV18 learns that there were other "disturbing facts" due to which it refused to extend the deal deadline. In June this year, two days before the deal deadline, Sahara wrote to Jet requesting a second extension.

In its letter, Sahara asked for a 15-day extension to satisfy two unfulfilled conditions in the agreement — obtaining government approval and receiving a no-objection certification.

But Jet flatly refused. In his response to Sahara, Jet Airways executive director Saroj Dutta said the share purchase agreement did not contain any provision for a further extension But here's where the tale twists. Dutta went on to say, "Further and in any case from what is stated above, in the light of disturbing facts that have recently come to light, we are not in a position to agree to any extension."

Never before has Jet made a public mention of any such disturbing information that could have caused it to rethink the deal. All along the airline's stance has been, "lack of government approvals" forced the deal apart.