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THE GREATEST DOG-FIGHT EVAAAHH!

Special News Correspondent

Expert Comments on Attempted Acquisition


Received with mixed emotions Competitors complained of monopoly of JA Analysts
Reduce duplication of route Reduce fragmentation of service segment

General Speculation
Price paid too high since Air Sahara was in loss

Mr Goyal
Economies of scale Improved revenues

Expert Comments on Attempted Acquisition Delay in clearances by GOI w.r.t integration of both airlines Widely believed that price of the deal was the real reason of failure Entry of LCC's during 2005-06
Game changer LCC s Started gaining market share

I don t intend to convert Air Sahara into an LCC

But sir, keeping in view the increasing popularity of LCC in India, don t you think Air Sahara should be transformed into an LCC?

Well, I think you are right because


JA is already leading the premium segment Business Analysis suggested LCC would control 50 % market share by 2010 (2006 forecast) LCC segment, therefore makes strategic business sense

So why do you think the deal fell through

Reasons for collapse of proposed deal


Delay from GOI for security clearance for board membership Reluctance from DGCA for clearance on operational issues JA s intention to negotiate for 10-20 lower rates Fast approaching deadline for expiration of ESCROW account Differences in Costs Turn-around-time of aircraft Training modules Distribution models Divergent working culture

The Future

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