Jet officials get security clearance
Home Ministry has given security clearance to four top Jet officials to be on the Board of Air Sahara.india Updated: Jun 06, 2006 15:33 IST
Jet Airways' $500 million deal to takeover Air Sahara got a boost on Monday, with the Home Ministry giving security clearance to four Jet officials to be on the Board of Air Sahara.
The officials who are part of the Jet Airways Board and would join the Air Sahara as Directors are Saroj Dutta, Vijay Kelkar, Javed Akhtar and Victoriano P Dunca, official sources said.
Following the acquisition, Air Sahara had applied for grant of clearances to the new members to the Directorate General of Civil Aviation (DGCA) to become members of their Board.
The file was forwarded by the Civil Aviation Ministry to the Union Home Ministry for security clearance, which was granted last week, the sources said, adding that the DGCA also cleared the four names after security clearance was granted to them.
Jet Airways is likely to operate Air Sahara as a wholly-owned subsidiary till some other regulatory clearances are granted to the acquisition process.
While the name of the 100 per cent subsidiary has been finalised, it will be announced only after all necessary approvals are received from regulatory bodies, including the DGCA.
The Monopolies and Restrictive Trade Practices Commission has listed the Jet-Sahara case for a final decision in July.
Once security clearance is granted, the reconstituted Air Sahara Board would meet to adopt a resolution to enable Jet operate the airline as its subsidiary, airline sources said.
Ten Jet officials have been working for the past two months with their Air Sahara counterparts to help them streamline sales, ticketing and several managerial issues, they said.
Jet Airways had acquired Air Sahara for an enterprise value of $500 milion (about Rs 2,300 crore) in January and had paid an advance of Rs 500 crore in March end as part of the buyout package.