On The Deal
This kind of acquisition may be new for the Indian aviation industry, but this has been the way forward for the international aviation industry.
The $500-million deal is not at all overvalued. We are in the business for several years and we know the business. I do not have any emotional connection with Air Sahara.
On The Market Share
The primary aim behind the acquisition is not to secure maximum market share, but to get the right infrastructure at airports. This deal will help us get that in terms of parking bays and other such things.
Our airlines had 45 per cent market share earlier. Our market share was eroded due to the entry of more players in the industry. We would have reached 50 per cent even without this acquisition.
However, the acquisition will now give us economies of scale, our cost of operations will go down, and revenues and profitability will go up.
On The US Routes
Somebody had fed the US government with wrong information. But the civil aviation ministry has already given the required clarifications to the US government. We do not need Air Sahara for flying to the US. I assure you that Jet Airways will fly to the US within this year.
On Turning Around Air Sahara
We are confident of making Air Sahara turn around within a year. Our top management team has already started putting a plan in place for this. There is no plan to launch any low cost carrier.
On HR Issues
We will not take the entire staff of Air Sahara. We will only take pilots, cabin crew, engineers and other technical staff. Earlier, we had lost some pilots and were facing severe pilot shortage. With this acquisition, Jet Airways will have more pilots.
On Funding
We will be funding the acquisition through internal accruals. We have a strong equity base to fund the buyout. Our bankers are examining the possibility of hitting the capital market to raise additional capital.
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