Jet chief gets OK on security, Sahara fleet new headache

As the Jet Airways acquisition of Air Sahara comes under a cloud, the one issue which is clear is that internal security agencies have cleared Jet Airways head Naresh Goyal’s name on Air Sahara’s board.

As the Jet Airways acquisition of Air Sahara comes under a cloud, the one issue which is clear is that internal security agencies have cleared Jet Airways head Naresh Goyal’s name on Air Sahara’s board. The matter, however, is still pending with the Home Ministry.

Goyal and four other directors from Jet Airways—Saroj Dutta, Vijay Kelkar, Javed Akhtar and Victoriano P Dunca—were to be appointed on the Air Sahara board. Home Ministry officials indicated there are no specific security issues and a decision will be taken in a day or so.

But with the Escrow account set to expire tomorrow, Air Sahara has been trying hard to push matters with the government agencies concerned. The Rs 2300-crore acquisition received a three-month extension in March as both parties committed themselves to the deal.

The only issue in the way was the delay in security clearance of Goyal’s name. As it now turns out, security agencies have no objections to his being on the board but the official OK is still to be communicated to the Civil Aviation Ministry.

However, the situation is further complicated by Jet’s own evaluation of Air Sahara’s fleet of two dozen aircraft. Sources said Jet’s technical team has concluded that large expenditures—over and above the deal amount—are needed given Sahara’s maintenance standards. In particular, spares being used in many aircraft will need to be changed. It is here that Jet wanted some scaling down in the evaluation.

Shah Rukh proposed for Jet board

Away from the clearances of Jet Airways nominees on Air Sahara Board, it’s learnt that actor Shahrukh Khan’s name has been proposed separately for inclusion in Jet Airways board. This is, however, not linked with the acquisition and is currently being vetted for security clearance.