Jet blames it on unclear M&A policy

Airline files transfer petition in SC.

Breaking its silence on the Air Sahara issue, Jet Airways today partly blamed the government's unclear policy on airline mergers and acquisitions for its decision not to extend the time-limit of the share purchase agreement to acquire Air Sahara.

In a media statement, the company said the agreement between Jet and Sahara was contingent on certain conditions being satisfied before the due date of June 21.

"These conditions related to some permission being given by the government, as well as certain policies relating to mergers and acquisitions of airlines being in place," it said.

Reform and liberalisation of the aviation sector had been relatively fast-paced, but policy changes in such key areas had their own time-frame, it added.

"Commercial transactions, however, have their own time-frame based on financial and other techno-commercial compulsions," the statement said, adding the decision was also prompted by commercial considerations, and was in the interests of Jet and its family of shareholders.

However, the airline was quick to add that "sustainable reform must hasten slowly" as the government had to balance various strategic needs, and accommodate different points of view.

Jet has also filed a transfer petition before the Supreme Court. This comes even as the Mumbai High Court and Lucknow district courts are hearing arguments on the Rs 2,300-crore Jet-Air Sahara deal.