According to media reports on Nov 5, 2018, Jet Airways is in the second round of discussions with TATA Group for stake sale in the company. Earlier, almost a week back, Jet Airways promoter Mr Naresh Goyal had approached Reliance Industries’ Mukesh Ambani and TATA Group’s Ratan Tata for raising capital through stake sale (Read more).
However, Mr Goyal did not get any response from Mr Ambani, while TATA Group had sought full control on the airline. If the deal goes through Jet Airways is expected to get merged with Vistara (TATA’s JV with Singapore Airlines Limited). In addition, TATA may buy Etihad’s stake in Jet Airways. Mr Goyal currently holds 51% stake in Jet Airways, while Abu Dhabi-based Etihad Airways holds 24% in the company.
Jet Airways urgently needs funds to repay obligations and manage operational expenses to stay operational. Players in the Indian Aviation sector have been struggling on their financial matrix owing to higher jet fuel prices, currency headwinds and cut throat competition in the sector. Read More