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tsk911 · Member Joined: 19 Dec 2006 Posts: 223 Location: DEL

News flashing on NDTV andTimes NOW channel. Deal revalued Rs.1800-1850 Crores... Both the channels are showing figures with Rs.50 crores difference.
Moreover, Jet has to shell out Rs.1365-1375 crores to complete the deal.
Here's the link to CNN-IBN news:
http://www.ibnlive.com/news/business/04_2007/jet-to-buy-sahara-at-lower-price-38157.html

The CNN-IBN web link states the deal has been revalued between Rs.1400-Rs.1500 Crores.
Sahara has 10 Boeing 737-800s on order book and no longer has the B767-300. Now it's operated by Ocean Air. The pic here:
http://tinyurl.com/2xebaf
Pic courtesy: Stuart Haigh, Topjetpix :Airliners.net

JET chief Naresh Goyal told to Times NOW that no further reports will be made available before 4:30 PM IST.
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Aiel · Member Joined: 19 Dec 2006 Posts: 927 Location: Bangalore

Quite a surprise considering how the last deal ended.
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tsk911 · Member Joined: 19 Dec 2006 Posts: 223 Location: DEL

the_380 · Posted: Tue Apr 10, 2007 3:20 pm Post subject:

Im seriously having doubts as to WHY is 9W still interested in S2?
Their primary goal was to get an access to US, they got it for their own airline.
Now wonder what will happen
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himmat01 · Member Joined: 19 Dec 2006 Posts: 1392 Location: DEL

I hope NG sticks to his words this time.
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avbuff · Member Joined: 22 Dec 2006 Posts: 5031

the_380 · Posted: Tue Apr 10, 2007 3:32 pm Post subject:

avbuff · Member Joined: 22 Dec 2006 Posts: 5031

If 9W can make its way to the US even with the accusations of terrorist links ... do you think this stuff would be a big deal?

victor2alpha · Member Joined: 08 Apr 2007 Posts: 120

I hope this has nothing got to do with the top mgmt of 9W moving out. May be they knew it, and didnt really support it but well lets not get into speculations! Lets wait and watch what happens..

Rolling Eyes

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the_380 · Posted: Tue Apr 10, 2007 4:05 pm Post subject:

victor2alpha · Member Joined: 08 Apr 2007 Posts: 120

avbuff · Member Joined: 22 Dec 2006 Posts: 5031

the_380 · Posted: Tue Apr 10, 2007 4:21 pm Post subject:

victor2alpha · Member Joined: 08 Apr 2007 Posts: 120

Agree.. Debts and more debts.. BTW NTDV writes

Nimish · Posted: Tue Apr 10, 2007 4:42 pm Post subject:

the_380 · Posted: Tue Apr 10, 2007 4:57 pm Post subject:

The biggest problem for 9W is that whether they accept the deal or not, they lose money.
So better pay more and get some more pilots/Mx etc....
But 9W will compromise on the price and reduce it and then buy. Else IT definately has his eyes.
I can remember Mallya announcing S2 not worth more than 750 crores INR the last time.
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VABBy · Member Joined: 19 Dec 2006 Posts: 823 Location: DEL

Well if the deal goes thru i guess the real winner is Sahara Pariwar who get away with kool amout of money in such a capital intensive business..

Bt yeah i guess if this consolidation happens KF shud be allowed to go international.
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Nimish · Posted: Tue Apr 10, 2007 5:11 pm Post subject:

blrsea · Member Joined: 25 Mar 2007 Posts: 182

ABN397 · Member Joined: 27 Dec 2006 Posts: 113 Location: India

[

Hey btw, whats the 1st route for jet to US? BOM - BRU - EWR / BOM - PVG - SFO ? What routes are they planning..[/quote]

It is all given on Jet's website: www.jetairways.com

malQ · Posted: Tue Apr 10, 2007 5:52 pm Post subject:

So let me make a prediction here - this deal is the fore-runner to Jet Airway's low-cost carrier coming rapidly to an airport near you. And presenting, in all-economy configuration:-

2 x 737/800 already with 9W
? x 737/800 in quick change configuration
All ATRs and CRJs.
? x 737/various already with Air Sahara already in economy
And
The 737/400 already with 9W and going long in the tooth.

+++

That leaves Jet Airways with around 40-50 aircraft, mostly new, in 2-3 class configurations.

+++

Next stop - cargo!! How did we forget?

+++

This should be good. The interiors of most of the Air Sahara aircraft were in real need of some "Jetification".

Aiel · Member Joined: 19 Dec 2006 Posts: 927 Location: Bangalore

It might also mean the end of the 'tooth paste " livery of Sahara. Very Happy

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the_380 · Posted: Tue Apr 10, 2007 6:13 pm Post subject:

Birendra · Member Joined: 15 Feb 2007 Posts: 1411

Does Jet have the people or is it taking the people from S2 also Very Happy

Nimish · Posted: Tue Apr 10, 2007 6:34 pm Post subject:

Nimish · Posted: Tue Apr 10, 2007 7:58 pm Post subject:

From A.net:

tsk911 · Member Joined: 19 Dec 2006 Posts: 223 Location: DEL

But all B737's of S2 are on lease... so one day or the other, they will be returned... Even S2's goodwill is not that good....
Still the deal is OVER-valued.
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Nimish · Posted: Tue Apr 10, 2007 9:03 pm Post subject:

tsk911 · Member Joined: 19 Dec 2006 Posts: 223 Location: DEL

Dipanjan Mallik · Member Joined: 25 Jan 2007 Posts: 15

Jet's main aim is to increase the shares the hold over the avaition sector which was rapidly decreasing after the arrival of 6 new airlines so where it had 40% earlier when the deal was first struck 1 yr 3 mths ago but now it has decreased so the best way is of buying another airlines and no other big airlines is in the mood of selling their company but when it has got S2 and they r gettin a rebate of 400 crores then y will they leave it.Any other ambitious person would hve done the same Naresh Goyale is doing Very Happy

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tsk911 · Member Joined: 19 Dec 2006 Posts: 223 Location: DEL

the_380 · Posted: Tue Apr 10, 2007 11:36 pm Post subject:

Evening Edition of Your Stocls on CNBC
Experts say 9W stocks not worth buying. Besides tomorrow markets might end up in the red.
Different channels reporting different amounts. NDTV Profit says 1800 crore, CNBC says 1450 crores.
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XBValk · Member Joined: 27 Jan 2007 Posts: 124 Location: NYC/COK

Now with a merger 9W should be able to offer more domestic Connection and expand to more Internationally.. Hopefully they’ll be able to put up a fight against Air India(n)

tayaramecanici · Member Joined: 03 Jan 2007 Posts: 648

Where does S2 stand after being hoodwinked down the alley of M & A. They have always been squandering hence they offered themselves for SALE. And of all the airlines the one and only other pvt operator bids in at a ridiculous price to scuttle others and S2. The very fact that 9W was allowed to take over S2 without the possibility of other being given the approval to fly intl is anti-competitive and blatantly biased in favour of 9W. There is no doubt that 9W will renew its offer to buy S2 albeit at a lower price rather that lose the $500m(or less) in the escrow acct.
The above statement is from my post on Mar 13 on the thread ''9W to operate AMD-LHR..''

The fundemantal question is How does this merger affect the future growth of aviation in India ? There is no doubt in my mind that 9W will try to thwart all competition to KEEP THE CAKE (Intl).......... Thats if this whole merger goes thru, i've my doubts if NG can pull this one off. Last weeks exodus of 9W exec might have been a pre-cursor to the offer to buy S2. I am sure the veteran execs would have realised that the ''Witches are arriving too late to save the drowning ship/s ''.
There is absolutely no synergy between the 2 cos today. S2 has huge burden on its fleet of leased aircrafts, these have to be returned in the same condition as recieved (Infact last time, NG had highlighted the leased aircraft maint status as one of the reasons for pulling out). S2 crew have deserted in large numbers. There are marginal advantages in DEL and BOM with regards to check-in desks but thats ltd to DOM ops which is already saturated. 9W will undoubtedly use the additional capacity to operate gulf using its own metal and S2 on dom however the tired S2 eqpt will erode 9W brand in the dom sector. The other gains to 9W could be in the form of the 10 B738 on order by S2, its impossible to get delivery slots for 2008 but then it all depends on how the EU-USA O S affect airlines in EU. A marginal negative effect could place huge numbers of aircrafts on the leasing market suppressing rentals and eroding this advt that 9W might have not to mention the bloody IRAN conflict and possible $100/brl of OIL.
Either ways if NG pulls this one or sinks with it, this whole episode is bad news for Indian aviation, The way NG is allowed to write the rule book to his advantage. If this had been in EU, Kingfisher would have been allowed another go at S2 because now NG is effing buying at the price offered by VM for S2 or irrespective of the outcome of this whole bloody arbitration other operators would have been allowed to fly Intl with immediate effect.

sammyk · Posted: Wed Apr 11, 2007 5:01 am Post subject:

Why is everyone making a big deal about these leased aircraft?

Jet Airways should be able to bring them up to their standards. Repaint them and refurbish the interiors. Who are they leased from anyway, a leasing company or another airline? Either way they will have to repaint them and they could always put the Sahara interior back in when they return them. Then again they could also just renew the lease if possible.

AKLDELNonstop · Member Joined: 19 Dec 2006 Posts: 1066 Location: Auckland

Intersting. Very interesting. I think this time the deal for 9W is better than the last time because it does open up slots and routes for them. Also reduces competition to South East Asia. And 9W gets all the South East Asia flights of S2.

Reduces competition in domestic sector. I think this move might be beneficial to both IT and 9W because the exodus of S2 might allow them to rationalise the pricing a bit as S2 was offering full service at LCC rates.

Well I guess time will tell.

Nimish · Posted: Wed Apr 11, 2007 8:48 am Post subject:

shivendrashukla · Posted: Wed Apr 11, 2007 9:55 am Post subject:

What aboout the strategy of Jet this time? Are they going to implement the same thing that they had decided last time or are they going to rework everything agaiin from starting?

I mean they had decided to rename Sahara TRANSJET. Are they still going to implement that or start fresh?

Cheers
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VABBy · Member Joined: 19 Dec 2006 Posts: 823 Location: DEL

Finally it seems its Sahara shri who had the last laugh with S2 being sold for 1950 crores with jst a 50 crore discount. ALL Liabilties to remain with Jet and bad for pax like us for whom its the end of the era of fares which were comparable to LCC carriers but provided by full service airlines.

Jet resurrects Sahara buy at $50m discount

Cornered by legal compulsions that would have extracted a tough price, Jet Airways, India’s largest airline by marketshare, has decided to go ahead with the deal to buy out Air Sahara.

The rapprochement comes in the middle of acrimonious arbitration proceedings, after Jet Airways walked out of an agreement to acquire Sahara in June last year. The transaction will now be completed in accordance with the original share purchase agreement, except for a $50m discount in the enterprise value, sources close to the deal said. After accounting for earlier payments and debt, Jet will now pay about Rs 950 crore for Air Sahara. Of this, about Rs 400 crore will be made in cash immediately and the remaining will be paid in four instalments, sources said.

The valuation is being seen as `way too high’ by analysts, but the deal marks the end of nine months of uncertainty on the issue. Jet Airways shares ended flat Rs 644.85 on Tuesday after rising initially.

LINK
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Nimish · Posted: Wed Apr 11, 2007 11:16 am Post subject:

From HT.com