Jet feels pinch of deal failure

The fallout of the failure of the deal with Sahara has taken its toll on Jet Airways, with the airline cancelling its London-Amritsar flight.

Sources in Jet said the company had taken a wide body air craft from Air Sahara, after both companies had signed a merger agreement two months ago.

The aircraft was plying between London-Amritsar. "With the deal falling through, we have given the aircraft back to Air Sahara. This lead to cancellation of the Amritsar-London flight," they explained.

Jet has also stopped taking booking for Air Sahara flights through its website. Passengers who had already bought tickets through the Jet website would be "accommodated on Jet flights, or else the amount would be refunded," they added.

Jet today informed the stock exchanges that it filed a petition under Section 9 of the Arbitration and Conciliation Act, 1996 against Sahara. It also sought certain interim reliefs before the Mumbai High Court.

Meanwhile, the brass of Jet Airways is still in London to work out an alternate strategy. "The Naresh Goyal-led team is camping in London for tying funds with international financial institutions for its proposed aircraft acquisition. They are finalising financial arrangement with offshore bankers," a source said.

Asked about approvals for US operations, he said, "It should happen soon."