Tata Group in talks of acquiring a controlling stake in Jet Airways
Date: 2018-11-16   Author: Ojaswita Kutepatil  Category: #news

Tata Group in talks of acquiring a controlling stake in Jet Airways

Tata Group is reportedly inspecting Jet Airways’ books as the multinational corporation considers to grow its footprint in India’s growing air travel sector by potentially purchasing a stake in the cash-strapped carrier.

As per trusted sources, the discussions are still in its preliminary stage and it is not ascertained to result in a transaction. It was even reported that Saurabh Agarwal, Chief Financial Officer of Tata Group and Naresh Goyal, Chairman of Jet Airways were heading the talks. Amit Agarwal, Chief Financial Officer of Jet Airways said in a statement that there’s a lot of interest in the Jet Airways Brand but refused to confirm if Tata is seeking a stake in the company.

According to sources familiar with the development, a successful deal would result in Tata’s third investment in the country’s lucrative aviation sector after the group’s two local joint ventures, Singapore Airlines Ltd and AirAsia Bhd. Apparently, a stake sale can help Jet Airways bring in the much-needed funds and relieve itself from the cash crunch that has led to delays in worker’s salaries and payments to aircraft leasing companies.

Jet Airways’ shares were reported to have risen by 6.4 percent, while the stock is still down by 70 percent this year, with a value of $387 million. The aviation company reported its third straight quarterly loss through surging liabilities that indicated deepened financial distress.

Moreover, the company is thriving in a market where intense competition has led to depressed fares and high fuel prices - made expensive by local taxes – to nullify its profits. Jet Airways, for the record, hasn’t made any profits since nine of the past 11 fiscal years.

As reported by Bloomberg, the Mumbai-based carrier isn’t the only one facing a downfall, the low-cost operator, IndiGo also reported quarterly losses for the first time, while SpiceJet Ltd., is also seeking more time to compensate for leased aircraft.



About Author


Ojaswita Kutepatil

Ojaswita Kutepatil

Ojaswita Kutepatil, a mechanical engineer by qualification, worked as a BDE and Technical Engineer before switching her profession to content writing. Currently, she works at AlgosOnline. as an Content writer, where she pens down write-ups pertaining to the market res...

Read More

More from Ojaswita


Post Recommendents

Sutures Needle Market Overview with Detailed Analysis, Competitive landscape, Forecast to 2023
Author: Partha Ray

Market Study Reports research study on Sutures Needle market Statistics 2018-2023 is a detailed analysis of this business space inclusive of trends, competitive landscape, and the market size. Encompassing one or more parameters among product anal...


Trends of Offshore Supply Vessel (OSV) Market Reviewed for 2018 with Industry Outlook to 2023
Author: Partha Ray

' Offshore Supply Vessel (OSV) Market forecast report now available with Market Study Report encompasses an exhaustive study of this business space with regards to pivotal industry drivers, market share analysis, and the latest trends characterizi...


Worldwide Ligament Stabilizer Market Forecast 2018-2023 Growth Drivers, Regional Outlook
Author: Partha Ray

Market Study Report has launched a report on Ligament Stabilizer Market Analysis that elucidates an in-depth synopsis of this business vertical over the forecast period. The report is inclusive of the prominent industry drivers and provides an acc...