PM Modi faces an election within months, and the collapse of an airline —with 23,000 jobs at stake — would put a dent in his business-friendly image and fuel criticism that he’s failed to deliver on promises about creating jobs.
Debt-ravaged Jet Airways India Ltd., the country’s biggest full-service airline, is selling a majority stake for 1 rupee — a little more than 1 US cent. It’s part of a bailout plan by its state-owned lenders that will give the airline time to arrange fresh equity. The complicated arrangement is on track to be voted through on February 21, in what would represent the rescue of one of the country’s most visible companies at a sensitive time, with India’s general election just weeks away. Read More….