Date:15/04/2006 URL: http://www.thehindubusinessline.com/2006/04/15/stories/2006041500300700.htm

Back Jet Airways to provide consultancy to Sahara

Our Bureau

New Delhi , April 14

Jet Airways has reached a "mutual understanding" with Sahara Airlines for providing consultancy support to it, the BSE was informed. "This consultancy will be provided by the company (Jet Airways) to enhance Sahara Airlines' product, improve their on-time performance and service levels," Jet has told the BSE.

A 10-member team from Jet Airways is already helping Air Sahara in its operations till all regulatory approvals are received.

Jet Airways acquired Air Sahara for an enterprise value of $500 million in January. The agreement is to see the entire aviation business of Air Sahara, including some of aircraft leases, real estate like the lounges run by it and assets like auxiliary power units and engines, being taken up by Jet Airways.

While the deal has not yet been sealed, it is likely to be facilitated by the recent decision of the Aircraft Acquisition Committee (AAC) of the Ministry of Civil Aviation. The committee has proposed allowing 100 per cent transfer of property, including aircraft, routes, and parking bays, when one company buys out another.