Jet Air may miss merger deadline

With just two days left for the the deadline of Air Sahara merger with Jet Airways, some crucial clearances are still pending.

The Directorate General of Civil Aviation (DGCA) is yet to clear Jet Airways' bid to buy the entire stake in Air Sahara for $500 million.

The home ministry has not yet cleared the appointment of Jet Airways chairman Naresh Goyal on the Sahara board. And the aircraft acquisition committee has not yet cleared the transfer of Sahara's aircraft to Jet.

Jet Airways executive director Saroj K Datta was not available for comments. However, a source close to the development said, "Top executives from Jet Airways and Air Sahara are convening meeting in London to streamline the merger. There are also talks on extending the escrow account in case the airline fails to secure green signal from DGCA." A senior DGCA official said, the "clearance has not yet been given to merger of two airlines."

On whether the go-ahead signal will be given in two days time, the DGCA official declined to comment.

Sources said, the critical issue would be getting pending approvals rather than securing clearances from the ministry of home affairs for Naresh Goyal to be on the Air Sahara board.

"Jet Airways is in process of making alternate plan to replace Naresh Goyal with some other senior Goyal's close aide for the time being. Goyal will be inducted as soon as the clearance is in place," they added.

According to the DGCA sources, the aviation regulator is awaiting the ministry of home affairs to clear the five member board of Air Sahara after the merger.

The home ministry has cleared only four Jet Airways nominees - out of a total five - on the Air Sahara board.