Airline explains failed deal

NEW DELHI – Breaking the silence on the collapse of the Rs23 billion (US$496 million) deal to acquire Air Sahara, India’s Jet Airways says the decision not to salvage the pact was purely on “commercial considerations” and that it was moving the Supreme Court for transfer of litigation in different courts.

Terming the controversy as “unfortunate”, Naresh Goyal-controlled Jet indirectly hit out at Sahara, saying it was forced to clarify its position due to “inaccurate statements made by vested interests”.
“There is nothing more to the actions of the parties [of not seeking extension of share purchase agreement] beyond commercial considerations,” Jet said a week after the deal fell through, leading to acrimony and a legal battle between the two airlines, whose proposed merger was touted as the biggest aviation deal in India.

“A transfer petition is being filed by Jet Airways before the Supreme Court,” it said, adding that litigation has ensued after the expiry of the agreement June 21, and proceedings are pending in the Bombay High Court (initiated by Jet) and Lucknow Courts.

Brazil’s TAM Airline Orders $3 Bln of Airbus Aircraft

By Romina Nicaretta

June 28 (Bloomberg) — TAM SA, Brazil’s biggest domestic airline, placed a firm order for 37 Airbus aircraft worth as much as $3 billion, expanding its fleet to meet rising demand while seeking to curb fuel costs.

The Sao Paulo-based carrier placed orders for 15 A319, 16 A320 and 6 A330-200 planes, with deliveries to take place between now and 2010. The order value is based on the top list price of each model, the company said in a statement.

Brazilian airlines TAM and Gol Linhas Aereas Inteligentes SA are adding to their fleets as faster economic growth and the collapse of Varig, Latin America’s biggest airline until last year, boosts demand for their domestic and international service. The planes will replace TAM’s Fokker-100 aircraft, Eduardo Puzziello, an airline analyst at Fator Corretora in Sao Paulo said.