The ₹10 trillion Tata Group may want some of Jet Airways’ parts after the airline’s employees decided to bid
Jul 1, 2019, 20:29 IST
- The Tatas could bid for Jet’s bilateral rights and aircraft, according to an ET report.
- Sanjay Vishwanathan-led AdiGroup and a Jet’s employee consortium might bid for the airline.
- Jet Airways piled up as much as ₹85 billion in debt, and has been declared bankrupt.
Advertisement
Sanjay Vishwanathan-led AdiGroup and a Jet’s employee consortium might bid for the airline.
Jet Airways piled up as much as ₹85 billion in debt, and has been declared bankrupt.
However, each of these bidders want different things. While Sanjay Vishwanathan-led AdiGroup and a Jet’s employee consortium probably want the airline to fly again, Tatas who have their own airline Vistara and also hold a majority stake in budget airline AirAsia -- want to take over some of its assets.
The Tata group had tried to take over the company last year, but the talks fell through in November last year. Ever since the airline went in for bankruptcy, the group’s view on it has changed. “There is no value in buying the company now anyway,” an official told ET.
Advertisement
Bilateral rights on the other hand can provide Tatas with traffic rights on international routes.
Jet Airways had been in trouble for years now piling up as much debt as ₹85 billion. The airline had tried to expand during tough times of high fuel prices and excessive competition, taking a hit on its margins. After multiple attempts to bail out the airline, its largest lender State Bank of India had stalled a credit line, which led to its grounding in April.
SEE ALSO
Jet Airways' employees will bid for 75% stake in the airline along with London-based AdiGroup
Advertisement
Jet Airways founder Naresh Goyal and wife stopped from leaving India - airport official