Consolidation takes off in India’s aviation sector
With India’s aviation sector already hopelessly overcrowded, consolidation started in January when Jet Airways India and Sahara Airlines announced an agreement for Jet to acquire Sahara. Although the deal is subject to a confidentiality agreement, the companies announced that the acquisition would be for cash based on an enterprise value of approximately $500 million for Sahara. Pending regulatory approval, both airlines will continue to operate independently. Despite the deal, overcapacity continues to plague the industry and more deals are likely.