Processing .....please wait.. 
The article has been forwarded.... 
Jet Airways close to buying Air Sahara
By agencies
|
Wednesday, 11 January 2006, 20:30 IST
MUMBAI: Even before newer airlines could launch full-fledged services in India, consolidation seems to have begun in the industry.
Indias number one private airline operator Jet Airways is close to buying out Sahara, the No. 2 private carrier, in a deal worth $560 million, newspapers reported Wednesday.
If the deal comes through, it would create the largest domestic airline in terms of fleet, turnover and valuation, the Economic Times said.
Indian liquor baron Vijay Mallya, who runs startup airline Kingfisher Airlines, had bid for Air Sahara, but the newspaper said he had withdrawn from the race.
The paper said the merged company would have more than half of the domestic market and a fleet of more than 90 aircraft, with revenue of $1.6 billion. Last April both the airlines had received permission to fly international routes.
In September last year, Air Sahara said it was exploring opportunities for alliances and partnerships to help fund expansion and that adviser Ernst & Young had put its enterprise value at $750 million to $1 billion.