Date:26/03/2006 URL: http://www.thehindubusinessline.com/bline/iw/2006/03/26/stories/2006032600540600.htm

Back Landing troubles?

After much speculation about whether the deal was on or off, the deadline for the Jet Airways-Air Sahara merger has been extended by three months. The $500-million buyout of Air Sahara will hand Jet about 50 per cent market share and enable it get around the infrastructure and staff constraints. Air Sahara's landing rights at major airports are expected to go to Jet. But with regulatory approvals on these rights taking unexpectedly long and a section of the Air Sahara staff appearing none too keen on the transition, the payoffs for Jet from this merger are now in doubt. The uncertainty may not go down well with the market. The stock, which has lagged the market over the past year, may continue to be dampened by uncertainties in the deal and high fuel costs.

Aarati Krishnan