The delay in clearance of Air Sahara's application for share purchase agreement by the Director General of Civil Aviation has become a major stumbling block for Air Sahara’s acquisition by Jet Airways with the top brass of both the airlines working on a strategy to tide over this crisis.

The top management of Jet Airways was busy in deliberations throughout the day at chairman Naresh Goyal’s residence even as speculation was rife that the deal could be reconsidered.

Jet officials, however, denied such plans and were optimistic that the requisite approvals would be received in due course of time. ‘‘The deal is on and is taking its normal course of time. We will meet Air Sahara officials before March 24 to decide the future course of action,’’ Jet Airways Executive director Saroj Datta said here today.

The Jet-Sahara deal is mired by a number of regulatory problems, including DGCA’s hesitation in clearing Air Sahara’s application for share purchase agreement signed between the two and the change of management. Both the airlines are facing a dilemma to decide on the future action for the Rs 2,000 crore Escrow A/c floated by the two for the buyout.

The account is set to expire on March 24 and the requisite approvals have to come before this date.

Datta said that the two airlines would meet soon to take a decision on the future strategy where the two can extend the transaction date of the Escrow A/c. The managements of the two airlines are likely to meet in a day or two to find a way out of the present crisis.

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