[ad_1]
Prime Minister Narendra Modi 's government has sought Tata Sons Ltd.' s help to rescue struggling Jet Airways India Ltd., people familiar with the matter said.
Tata Sons is in talks with the government about a potential haircut to state -run banks on Jet's loans as part of the plan, while Airports Authority of India may forgo some of its dues, one person said Thursday, The Tata Sons board is due to deliberate on the matter Friday, the people said.
The structure of the potential deal has not been finalized, they said. One option is to combine Jet with Vistara, an airline venture Tata runs with Singapore Airlines Ltd., one person said. Economic Times said that they are weighing a potential all-stock merger of the theories – something Jet said was speculative.
Jet shares rose 24 percent, the biggest single-day gain on record, to close at 320.90 rupees in Mumbai. A Tata spokesman declined to comment, while an aviation ministry spokesperson did not answer multiple calls and a text message to his mobile phone.
Any investment by Tata Sons will catapult the group to the top league of Indian aviation, dominated by budget IndiGo, providing a lifeline to Jet, which is falling behind on payments to staff. (19659002) Kingfisher Airlines, founded by beer tycoon Vijay Mallya, completed operations in 2012 after failing to clear its banks, staff, lessors and airports. SpiceJet Ltd.
A deal with Jet Airways, in which Abu Dhabi's Etihad Airways PJSC owns a 24 percent stake, will give parent Tata Group access to some lucrative badets the airport of Amsterdam, a large fleet of aircraft, and an established domestic network based in Mumbai.
One obstacle to Jet-Vistara combination could be the difference in fleets and brand
Tata Sons also runs a low-cost airline with Malaysia's AirAsia Group Bhd. The two existing Tata-operated carriers had a combined Indian market share of 8.2 percent in September, compared with Jet's 15.8 percent, a figure which stood at 35 percent a few years ago.
Fare Pressure
] Jet Airways is struggling to survive in a market where intense competition has taken place, made expensive by local levies, negate gains from a surge in travel. The company reported its third straight quarterly loss Monday with overtime that signaled a deepening of financial distress. $ 21,000 in the year ending March 2019 Sydney-based consultancy CAPA Center for Aviation. Most of them have cash balances, according to CAPA.
A deal between Tata and Jet Airways will not change those dynamics immediately, said Rahul Kapoor, a transportation badyst for Bloomberg Intelligence.
"Tata Group's white-knight act to take a stake in Jet Airways is unlikely to alter the Indian aviation market," he said. "
A tax credit for the future of the future." JetPrivilege, a loyalty program. Chief Executive Officer Amit Agarwal said on a conference call Tuesday.
(Except for the headline, this story has been edited by NDTV staff and is published from a syndicated feed .)
[ad_2]
Source link
