Outgoing Sahara pilots rethink resignations

Here is some good news for Air Sahara following its Rs 2,300 crore acquisition deal with Jet Airways having fallen through.

Of the 35 pilots who have given six-month notice for resigning, 20 have withdrawn their application.

"The remaining 15 pilots are also contemplating the option of staying back. This move comes at a time when the airline is reviewing its business plan and has appointed Ernst & Young (E&Y) as consultant," sources said.

Pilots resigning from an airline have to give a prior notice of six months as per the DGCA rules. Industry sources said that pilots are giving notices even without a job in hand.

"They are sure that they will get a good deal in the wake of industry facing severe shortage of pilots," they said.

As part of its revival plan, Air Sahara is now busy filling up senior posts to streamline operations. "The airline has appointed a new vice-president for IT, general manager for international operations and a new marketing head. More appointments will follow," sources hinted.

The airline is finalising its business plan with E&Y. "All possible options to bring down costs by maintaining full service structure are being explored. Cost cutting will be done without compromising quality," said a senior Air Sahara executive.

Meanwhile, it is learnt that out-of-court settlement with Jet Airways has hit a major roadblock. "Both the parties are continuing their negotiations but could not find consensus on compensation amount," sources said.

Earlier, Jet had advanced a sum of Rs 500 crore out the agreed consideration of Rs 2,300 crore to the shareholders of Air Sahara against the pledge of 100 per cent of Air Sahara's shares and parked Rs 1,500 crore in an escrow account with ICICI Bank.

Meanwhile, Jet is likely to write off Rs 180 crore spent in the course of acquisition.

Following the termination of share purchase agreement, Jet and Sahara have separately moved courts in Mumbai and Lucknow.

Meanwhile, Jet has suspended Asmin Tariq, who was among the 24 persons arrested by the British police for plotting to blow up US airliners.