Tata Group In Talks To Buy Large Stake In Debt-Laden Jet Airways: Report
Jet Airways has not been able to pay salaries to employees on time The airline said in August it will inject funds It also said it would cut costs to turn around the business
Business conglomerate Tata Group has held preliminary discussions to buy a large stake in debt-laden Jet Airways (India) Ltd, the Times of India reported on Thursday. Tata has sought management control of Jet, seeking at least 26 per cent initially and another 26 per cent via an open offer later, the paper said.
Jet Airways has been facing a financial crunch amid rising oil prices and a depreciating rupee. In a bid to revive itself, Jet said in August it will inject funds and cut costs to turn around the business, without elaborating further.
Tata Sons is the holding company for Tata Group which already has two aviation ventures in India - Vistara with Singapore Airlines and AirAsia India with the Malaysian budget carrier AirAsia Group.
Jet Airways Chairman Naresh Goyal is the majority owner of the airline in which Etihad Airlines also owns a stake.
The struggling airline has also not been able to pay salaries to the employees on time.
Tata Group declined to comment while Jet Airways did not immediately respond to a request for comment on a public holiday.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)