India’s largest private airline Jet Airways is to purchase rival Air Sahara for £171 million.
The purchase has finally been agreed after a £251 million deal fell through last year when it failed to win regulatory approval.
Jet Airways, founded by former London-based travel agent Naresh Goyal, decided not to go through with the deal. However, Air Sahara argued the deal should be honoured and demanded compensation. An arbitration panel ruled the two airlines should come to an agreement between themselves.
The deal is said to be an amicable one.
The combined airline has an Indian domestic market share of 32%. Jet Airways operates from London Heathrow. Air Sahara has five international routes, although none cover the UK.