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Sahara claims full protection of employees' interests
by Gyanendra Kumar Keshri /Jayotika Mohan

    New Delhi: Emphasising that they have got the best possible deal in terms of value of their asset and protecting the employees' interests, Sahara group on Thursday assured full job protection along with emoluments and perks to the employees of Sahara Airlines Ltd, which has been sold to Jet Airways. "If the employees find it difficult to work under the new management, Sahara India Pariwar, in the spirit of true Pariwar (family), shall be responsive to any of their genuine difficulties and would take all steps to mitigate their difficulties," Sahara Group Chairman Subrata Roy said in an internal communication to Air Sahara employees.

   Alok Sharma, Executive Vice President, Sahara Airlines Ltd said that Sahara India Pariwar was fully committed to protecting the interests of every employee of the organisation. "Here is an organisation which has gone on the record and said that no employee will lose their grades or emoluments even for a single day," said Sharma. "We have an offer that should you not like working in the new entity you can always come back. Even if all the employees want to come back now today we are ready to accept each one of them," he added. When asked about the rationale behind the deal, Sharma said, "with the number of Airlines in the country increasing continually, we recognised that a fragmented market could ultimately result in a disservice to passengers and Airline employees on account of multiple overheads resulting in increased costs." He emphasied that the timing of the deal was perfect and they got the best possible price. Jet Airways India Ltd has acquired Sahara Airlines for 500 million dollars (Rs 2,300 crore). The deal was inked on January 18 by Sahara Group Chairman Subrato Roy and Jet Airways Chairman Naresh Goyal. Sharma said that Jet Airways have agreed to buy 100 percent stake in Air Sahara for 500 million dollars in an all-cash deal. Jet Airways also confirmed the deal and informed the Bombay Stock Exchange that its board of directors have given the green signal to acquire Air Sahara. "The Board of Directors of the company at its meeting held on January 19 has considered and approved, subject to receipt of regulatory approvals as maybe required, the acquisition by the company of 100 per cent of the fully paid up equity share capital of Sahara Airlines," Jet Airways said in a communication to the BSE.

    Certain principal aspects of the deal are: a) The agreement has been executed for an all inclusive enterprise value of around 500 million dollars for Sahara Airlines Ltd. b) The transaction is for an all cash consideration. c) Pending confirmation of regulatory approvals, both the Airlines will continue to operate independently. d) Sahara India confirms that workers shall not lose their jobs and cadres and gross emoluments will be unaffected. Upon closure of the transaction, based on requirements and performance Jet Airways shall absorb suitable employees.

    Meanwhile, in his reaction to the Jet-Sahara deal, Kingfisher Chairman Vijay Mallya said that the acquisition of Air Sahara by Jet Airways was expected, and it would not affect Kingfisher Airlines as it was doing well. "It will not affect Kingfisher. The combined entity might have a market share of more than 50 percent. I am not concerned about it. I wish all the very best to Goyal and Jet Airways," said Mallya. Sahara Airlines flies to four international destinations Chennai-Colombo, Delhi-Kathmandu, Delhi-Singapore and Delhi- London. Similarly Jet Airways also flies daily to London (from Delhi and Mumbai), Singapore (Mumbai and Chennai), Kuala Lumpur and Colombo (from Chennai) and Delhi-Kathmandu.
-Jan 19,  2006

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