‘Jet-Sahara merger will alter industry contours’

THE Jet-Sahara deal is in the interest of the two airlines, the aviation industry and the consumers, said Air Sahara president Alok Sharma. “It's a win-win deal for both airlines. Consolidation in the sector had to happen for the industry to grow. An industry that is ill is not in the interest of the nation or the consumers,” he said soon after the Jet-Sahara deal was officially announced. With two mergers in the works, size would be key for survival in the domestic aviation market, he added. He concedes that size has become an important criteria for success in the aviation sector. “For instance, Air Sahara needed the size to grow its market share,” he said. Postmerger, 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,” he added. On issues concerning its 3,700-odd employees, Mr Sharma said the group will ensure that interests of its employees are taken care of. “Those employees who decide against joining Jet Airways would be accommodated in the Sahara group,” he said. Discounting any foreseeable hitch in completing the transaction — something which derailed the deal last time around — he said government approvals for the deal were already in place. Mr Sharma said 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 Sahara group would retain the brand Air Sahara, he added.

Courtesy: EconomicTimes