New Delhi: India's biggest airline merger the Jet-Sahara deal reaches its final stage of negotiation.
The largest deal in Indian aviation history has hit an air pocket. The deal is being re-negotiated. The value of the deal remains the same.
The deal has been given an extension of 90 days.
An agreement is likely on Friday or else the two parties could extend the 65-day deadline for the agreement that expires on Friday.
Meanwhile, the government could be issuing post merger infrastructure guidelines shortly.
The aviation regulator has sought Home Ministry approval on the changes in the airline's Board and referred other issues, including those relating to infrastructure to government for its opinion.
Sources in the know said that DGCA has referred to the Government the issue of induction of about five new members on the board of Air Sahara as part of the agreement with Jet for effecting the Rs 2,300 crore deal.
Only after Air Sahara gets the necessary clearance, can it approach the Government for necessary approvals and this may take some time.
Sources also indicated that the government might issue guidelines on such an integration to deal with issues like allotment of parking bays, time slots and other infrastructure facilities.
The root cause of merger hurdles was a letter by public carrier Indian, which is against the handover of Sahara's airport infrastructure and air route rights to Jet, post the merger.
(With inputs from Agencies)
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