On Jan 20, 2006 the biggest deal in the Indian civil aviation history was announced with Jet Airways taking over Air Sahara for nearly $500 million (about Rs. 2,300 crore) in an-all cash deal, executed on late Wednesday night.
Announcing the deal through a joint statement, Jet Airways Chairman Naresh Goyal and Sahara group Chairman and Managing Worker Subrata Roy said they were "pleased to announce the execution of a share purchase agreement for acquisition by Jet Airways India Limited of the entire capital of Sahara Airlines Limited subject to regulatory approvals.''
The Indian Civil Aviation Ministry gave approval in principle, but the deal was eventually called off over disagreements over price and the appointment of Jet chairman Naresh goyal to the Air Sahara board. Following the failure of the deal, the companies filed lawsuits seeking damages from each other
A second, eventually successful attempt was made on april 12, 2007 with Jet Airways agreeing to pay 1,450 crore rupees ($340 million). The deal gave Jet a combined domestic market share of about 32%.
On april 16th Jet Airways announced that Air Sahara will be renamed as JetLite. The takeover was officially completed on april 20th, when Jet Airways paid Rs. 400 crore.
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