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Jet-Sahara deal will not lead to monopoly: Patel

   Mumbai: Emphasising that mergers and acquisitions have become a common practice these days globally across all sectors, Civil Aviation Minister Praful Patel said that Jet- Sahara deal would not lead to monopoly. Talking to mediapersons on the sidelines of a function "Mumbai Dialogue" Patel pointed out that every airline started its business in a small way and tried to expand its operations. "We have been liberal in granting licences to private airlines. Already some have been permitted and applications of few others were being considered", he said. Allaying the apprehension in the industry about Jet Airways gaining monopoly in the Indian aviation sector following its takeover of Air Sahara, Patel said, "this is going to happen but there is no need to fear about monopoly." When asked about the timing of the approval be given to the Jet- Sahara merger, Patel said it depended on the Directorate General of Civil Aviation and the Company Law Board, which were the competent authorities.

   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 Subrata Roy and Jet Airways Chairman Naresh Goyal. Acquisition of Air Sahara has made Jet Airways the undisputed leader in the Indian aviation sector. Post-acquisition, Jet would command over 45 percent of Indian aviation sector. Moreover, in lucrative metro destinations, like Delhi-Mumbai route that accounts for nearly 50 percent of total domestic air traffic, Jet-Sahara would account for 85 percent of the flights. Keeping this in mind, the smaller airlines like Kingfisher Airways, GoAir and Indigo are toying with the idea of forming an alliance to lobby with the government for a level-playing field.
-Jan 21,  2006

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