Special Correspondent

MUMBAI: Jet Airways on Tuesday stated that it snapped its share purchase agreement with Sahara Airlines on account of the time limits in the agreement, "which have expired before the conditions precedent have been met.'' This date was June 21.

"For commercial reasons, and in the interest of Jet Airways and its family of shareholders, the management decided not to extend the time,'' it stated in a press release here. "The reform and liberalisation on the aviation sector has been relatively fast paced however policy changes in such key areas have their own time frame. They have to balance various strategic needs and accommodate different points of view. Sustainable reform must "hasten slowly.'' Commercial transactions, however, have their own time frame based on financial and other techno-commercial compulsions,'' it added.

It further stated that the share purchase agreement entered into between Jet Airways and Sahara Airlines was based upon certain conditions precedent being satisfied before the due date. These conditions related to some permissions being given by the Union Government as well as certain policies relating to mergers and acquisitions of airlines being in place.

Litigation has ensued, and proceedings are pending in the Bombay High Court (initiated by Jet Airways) and the Lucknow courts. A transfer petition is also being filed by Jet Airways before the Supreme Court. "Jet Airways has acted entirely on sensible commercial and legal advise received by it,'' it added.