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 a major Indian airline based in Mumbai, Maharashtra. It is India's largest
airline and the market leader in the domestic sector. It operates over 400 flights daily to 67
destinations worldwide. Its main hub is Chhatrapati Shivaji International Airport, with
secondary hubs at Delhi, Chennai, Bengaluru, Pune and Kolkatta. It has an international hub
at Brussels Airport, Belgium. Jet Airways is owned by Naresh Goyal.

 


Jet Airways's head office is the S.M. Center, a rented, unmarked six storey building
in Andheri, Mumbai.[14][15] In 2008 Robyn Meredith of c
 said that the complex was "as
shabby as [Jet Airways CEO Naresh] Goyal's home is posh" and that the complex was "in
need of a fresh coat of paint". Meredith also said that the complex was 15 minutes driving
time from Chhatrapati Shivaji International Airport

  

Air Sahara flights have been operating since 1993 as one of the new creations of the Sahara
Parivar group. The initial Air Sahara flights took place with 2 Boeing 737-200s. Air
Sahara was initially named as Sahara Airlines and on 2004 it was renamed to Air
Sahara although its official listing was still Sahara Airlines . This move may have been done
to suit the change in the brand marketing policies. Air Sahara airlines became an international
carrier when the first Air Sahara flight flew from Chennai to Colombo in the year 2004.
Air Sahara has been recently taken over by Jet Airways in a move which makes the combined
market share of the Indian Aviation Industry to 32 percent. Air Sahara has been renamed as
Jet Lite Since then. Air Sahara as Jet Lite is expected to take Air Sahara flights to new routes
and destinations and continue to expand internationally. Air Sahara is also expected to benefit
from the combination in term of cost reduction of many operations and many other
operational benefits.
  



     

On January 19, 2006, Jet Airways (India) Ltd. (JA) announced its decision to acquire Air
Sahara (AS), the third largest airline company in India. It was to be the first acquisition in the
history of Indian aviation industry. The deal valued at Rs.22.5 billion approx. ($500 million)
was expected to enable JA, a leader in the airline industry, to further strengthen its position in
the market.

With this acquisition, the company would havclose to a 50 percent share of the Indian
aviation market. In addition, the company would add aircraft, acquire more parking slots,
more airline staff, and more international routes. The announcement of the deal received a
mixed response.

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The major reasons due to which the much talked about aviation industry felt flat on its face
were:
a) The policy related to mergers and acquisition in the aircraft industry did not clearly
specify the terms of transfer for airport infrastructure. The guidelines though clear on
parking bays and landing slots, did not specify the status of aircraft hangars, check-in
counters, cargo warehouses, passenger lounges and other such airport facilities.

b) Also, Jet Airways enthusiastically overvalued Air Sahara, and later wanted a discount
on the original price (20 to 25 percent). This is typically a case of overvaluing a
company whose business model was not robust

There are the Some of the reasons why Mergers & Acquisitions have failed in recent times
are as follows :-

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The merging companies i.e jet airwys and sahara fail to develop a set of guiding principles
linked to the merger's strategic intent. These principles should get at the very logic of the
transaction²is the merger absorption of one company into another or a combination
designed to take the best of both. Perfection may not be possible, but these principles will
ensure that all decisions drive the combined entity in the same direction which are lacking in
these merger which is the major eason for the failure of the merger.

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Ground rules for planning provide nuts-and-bolts guidance for how the planning teams
should act as they begin to put the face of the merged entity on paper. These rules should
include processes for how decisions are to be made and how conflicts should be resolved
which are lack in this merger and acquisition resulting failure of the merger

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Culture connection play a very imported role in the merger and acquisition of any company.
If the culture of both the company become satisfied then merger will be successful but in the
case of jet and sahara the culture of both the airways does not met and resulting the failure of
the merger.

 

 
 

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      is applied in this merger and acquisition. There are three
phases in this model i.e Unfreezing, Moving, Freezing phases. There are two stages i.e status
quo and desired state is there and two types are force Driving forces and Restraining forces
act on it. Driving forces which helps the company to move into the desired state and in this
merger and acquisition driving forces are better customer deals, profit margin, customer
satisfaction, to become the number one Airways , development opportunities, techniques and
the other forces which is Restraining forces are No Guiding principle O No ground rules
Cultural disconnect In this case the restraining forces are high as compare to the driving
forces to achieve a desired state so that the merger between the Jet and Sahara Fail.