Flying high

New Delhi, Aug. 16: The Sahara group will now concentrate on strengthening airline operations and termed the reports on talks with Jet Airways for an out-of-court settlement as “speculative”.

“We find these reports to be mere speculation. The dispute between Sahara and Jet is subjudice and we do not wish to comment on any speculation,” a Sahara group statement said today.

The statement comes amid reports that the top officials of the two airlines were holding discussions to settle the issue out of court.

Sources familiar with the development said the two airlines were in talks with each other to settle their differences over the failed Rs 2,200-crore merger deal out of court and the discussions had narrowed down to the exit fee to be paid by Jet Airways.

The two parties are negotiating on an exit fee in the range of Rs 300 crore to Rs 700 crore, sources added.

As part of the January deal, Jet had paid Rs 180 crore to revive Air Sahara and Rs 500 crore in lieu of the airline’s shares pledged with it. Besides, it had deposited Rs 1,500 crore in the escrow account opened for the purpose.

After the deal fell through on June 21 because of a failure to get regulatory clearances, Sahara moved a court in Lucknow seeking to bar Jet from operating the escrow account. This prompted Jet to approach Bombay High Court.

The high court is still considering the matter. If the takeover materialised, it would have been the country’s first and largest civil aviation merger of its kind.