Jet buys Sahara

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18 years 6 months

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Wires reports that Jet Airways just bought Sahara.
http://ia.rediff.com/money/2006/jan/10jet.htm?q=tp&file=.htm

Original post

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20 years 5 months

Posts: 10,625

Interesting move.

I beleive Sahara were in a little spot of trouble with their Pilots being poached by the glut if start up airlines in India.

All this expansion and start up reminds me of the .com bubble. Lots of new start companies and established companies growing quickly off of the internet.

That bubble burst, will this one?

Member for

24 years 2 months

Posts: 7,536

Interesting move.

I beleive Sahara were in a little spot of trouble with their Pilots being poached by the glut if start up airlines in India.

All this expansion and start up reminds me of the .com bubble. Lots of new start companies and established companies growing quickly off of the internet.

That bubble burst, will this one?

Dont mind if i correct some details... :D ... Air Sahara was in a soup mainly because its parent company, Sahara Corp. was batteling huge losses. The Sahara group's main source if revenue was from chits, or lottery tickets as you might call it. They did these not in metros but in small towns and cities, and of course as we see they made a massive industry out of it. Now India's new government has decided to post a ban of more than 10% investment from money gained by activities like the lotto. Sahara used to put 95% of its revenues in its other projects like Air Sahara, Sahara TV, Sahara Housing etc.

This was the main crutch on why they failed, and continue there slow sink to the bottom.

Sahara if bought by Jet, s it is still not official the price that we might see of the purchase is roughly $560 million, atleast 400 million dollars less than the projected market price. Shows how desperate Sahara was to sell the airline.

Now Jet has strengthened its position in the crowded Indian aviatio sector. Jet is also in talks with India's premiere loco, Air Deccan for an alliance. If this happens we might see alot of new airlines fold in not a very long time.

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Interesting info. Cheers Kabir :)

Personally, I think this massive rush for aircraft and general expansion can only lead to tears.
I think there will soon be a bunch of airlines going under and a lot of Airbuses sitting around flooding the secondhand market (Based purely on the fact that all the new airlines springing up in india are ordering Airbuses by the bucket load).

What do you think Kabir?

Member for

24 years 2 months

Posts: 7,536

Interesting info. Cheers Kabir :)

Personally, I think this massive rush for aircraft and general expansion can only lead to tears.
I think there will soon be a bunch of airlines going under and a lot of Airbuses sitting around flooding the secondhand market (Based purely on the fact that all the new airlines springing up in india are ordering Airbuses by the bucket load).

What do you think Kabir?

Well, i think the marketis there to fill the bucket loads of A320s that we seem to be getting. But what needs to be seen is whether the government provides the infrastructure to the airlines and the passengers. If in the end it turns out to be as chaotic as the Indian Railway system i dont see the boom being much of a boom.

Anyway latest reports say the Jet-Sahara deal is off fornow anyway. As i said before there market value is a big issue, Jet apparently does not think the airline is more than worth of what they are offering.

Kingfisher was also interested in the beginning, mainly because of the avilability of the international routes. But seeing how they have a huge Airbus order to tend to first it was wise of them not to invest in Air Sahara.

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9W board meets on 30th of this month so i dont think they will accept anything in the media before that.

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20 years 5 months

Posts: 10,625

Well, i think the marketis there to fill the bucket loads of A320s that we seem to be getting. But what needs to be seen is whether the government provides the infrastructure to the airlines and the passengers. If in the end it turns out to be as chaotic as the Indian Railway system i dont see the boom being much of a boom.

Anyway latest reports say the Jet-Sahara deal is off fornow anyway. As i said before there market value is a big issue, Jet apparently does not think the airline is more than worth of what they are offering.

Kingfisher was also interested in the beginning, mainly because of the avilability of the international routes. But seeing how they have a huge Airbus order to tend to first it was wise of them not to invest in Air Sahara.


I must admit, I agree on that.

However, although the demand is there for all these new airlines, so was the demand for all those new .com companies.

Eventually something is going to give.

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Yes... S2 bought by 9W for USD %500 million, S2 is pruposed to serve as the LOCO wing of 9W.

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18 years 6 months

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Some media says no LCC. Some say everything will be merged under a single brand.

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20 years 5 months

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Perhaps now would be a good time for me to introduce myself to the good folks at Jet.

I'm hankering to design them a nice livery :)

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24 years 2 months

Posts: 7,536

Some media says no LCC. Some say everything will be merged under a single brand.

Depends, if 9W goes ahead with there plan to form an alliance with Air Deccan, India's premiere LCC. If this alliance happens Kingfisher, SpiceJet, Go will face scrutiny in the Indian skies. If the alliance doesent happen then i thin S2 will be converted into a LCC.