Jet Airways' Attempted Acquisition of Air Sahara


Jet Airways' Attempted Acquisition of Air Sahara
Case Code: BSTR219
Case Length: 19 Pages
Period: 2005-2006
Pub Date: 2006
Teaching Note: Not Available
Price: Rs.300
Organization: Jet Airways (India) Ltd, Sahara Airlines Ltd
Industry:
Aviation
Countries: India
Themes: -
Jet Airways' Attempted Acquisition of Air Sahara
Abstract Case Intro 1 Case Intro 2 Excerpts

Abstract

The case discusses the attempted acquisition of the third largest airline company in India, Air Sahara by its rival airline company, Jet Airways. It describes why Jet Airways, a leader in the Indian airline company agreed to pay $500 million to acquire Air Sahara. The case further talks about the benefits that Jet Airways expected to have from the acquisition.

It also throws light on the changes brought in by the new low cost carriers in the Indian aviation scene. Finally, the case ends with a discussion on the future prospects of Jet Airways and Air Sahara in the highly competitive airline industry both within and outside India, in light of the failure of the proposed acquisition.

Issues

The case is structured to achieve the following teaching objectives

  • To understand the role of mergers and acquisitions in the growth strategy of airline companies
  • To analyze the benefits and drawbacks of acquisitions for an airline company
  • To study the impact of liberalization on the Indian airline industry and the implications of competition from low cost carriers to full service airline companies
  • To understand the importance of valuing an acquisition correctly, and reasons why some attempted mergers fail to take place

Contents

Keywords

Jet Airways (India) Ltd, Sahara Airlines Ltd, Air Sahara, Indian aviation industry, Airline company, Low cost airline, Full service airlines, Private carriers, Acquisition, Indian airlines, Monopoly entity

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