Jet Airways tipped to buy Air Sahara

India’s largest domestic airline Jet Airways is being tipped to buy-out Air Sahara in a deal worth $560 million, according to local media.

One of the National dailies in India, The Times of India reported: “The deal, which is said to be valued at about $560m (Rs 2520 crore) would give Jet, which already controls about 40 percent of the domestic market, a share of over 50 percent, putting it way beyond Indian Airlines’ 30 percent or so.”

It is being said that the merged entity would have a fleet of more than 90 aircraft, with revenue of Rs 7000 crore ($1.6 billion) and a market value of Rs 11500 crore.

The report added: “However, Sahara is said to have favoured Jet because of its willingness to put the entire money on the table at one go. The acquisition represents the first round of consolidation in the Indian aviation industry. Jet officials denied the move late into the night.”

Air Sahara had said in September last year 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.