Merger problems!

Jet airlines merger with Air Sahara seems to have run into big problems. Jet airlines which had initially agreed to pay about 2,300 crores for Air Sahara now wants to renegotiate the agreement for a lower price. Jet cites unfavorable market conditions as the main reason for seeking discount of the original price. Sahara airlines on its part refuses to budge and has asked for 15 days extension of the agreement.

Jet airlines has filed a case before the Mumbai court seeking to prevent Sahara from getting the initial 500 crores payment in the joint escrow maintained as part of the agreement. Meanwhile, another major player in the airline business, Kingfisher dismissed rumors about its interest in buying Sahara airlines.

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