With no end in sight to Jet Airways’ financial woes, the option of selling a stake to Tata Group is once again being considered.
The debt-laden airline, which is at risk of running out of cash in a month, is now considering resuming talks with Tata Group, Bloomberg has reported.
Talks with Jet Airways’ foreign partner Etihad Airways have reportedly reached a deadlock with the latter allegedly demanding that Jet founder and chairman Naresh Goyal step aside from any management role, the agency said.
Shares of Jet Airways ended a three-day fall and reached an intra-day high of 249.65 rupees, up from the previous close of 242.20 rupees in the Bombay Stock Exchange.
For salt-to-software conglomerate Tata Group, acquisition of Jet Airways would give its aviation ventures Vistara and Air Asia a shot in the arm.
Jet Airways’ financial woes may also be taking a toll on its passenger numbers. According to the national regulatory body, the Directorate General of Civil Aviation, India’s second largest airline by market share flew 1.47 million passengers in November last year, down from 1.62 million in January last year.