Analysts are a divided lot

Market analysts are divided over the benefits of the revisited clauses of acquisition on Jet Airways. Though some experts say that in the long term it is a good deal and will help the industry to consolidate, others point out that it came too late and will only strain the company's overstretched financials.

Says Amitabh Chakravarty, heads of equity research in Religare Securities: "The market has overreacted. In the medium and long term it is a good buy as the company which has got affected by budget carriers can use Sahara to take them on".

But there are others who differ and say that it would have been a good deal in Januray 2006, but not now. "Jet Airways has lost out by delaying its acquisition of Air Sahara for over 14 months due to protracted legal battles. It could have been benefited in all aspects, if it was planning to take over Air Sahara," an aviation industry analyst pointed out.

On international routes, the reasons for leveraging Air Sahara (which also can fly abroad apart from Jet) to fly abroad, experts say, does not exist today as it did last year. At that time Jet was facing legal hurdles in getting permission to fly to the US and the Indian government did not have any liberal bilateral air ser/vices agreement with the US.

Says an industry expert: "Now Jet has clearances in the US and there is no restriction on traffic rights to the US, so Sahara's rights have no value".