Tata Group is in talks to buy a majority stake in beleaguered carrier Jet Airways and its loyalty programme, television news channel CNBC-TV18 reported on Monday, citing sources.
Tata Group aims to buy the 51 per cent stake in the airline owned by Jet Airways founder, Naresh Goyal, and Etihad Airways’ 24 per cent stake, the station reported.
Tata said in a statement that it would not comment on speculation. Jet Airways did not respond to a request for comment.
Shares in Jet Airways surged on the news report, closing up 10 per cent on Monday.
India’s aviation market is growing at 20 per cent annually, but a combination of rising oil prices, high fuel taxes, a weak rupee, low fares and intense competition have driven carriers into the red.
Jet Airways is making losses and is struggling to pay salaries and meet aircraft lease payments. The airline, which is seeking a cash injection, said in August it would cut costs in excess of 20 billion rupees ($274 million) in two years and planned to raise funds by selling a stake in its frequent flyer programme. — Reuters
Want stories like this in your inbox?
Sign up to exclusive daily email
More Stories from Trade & Commerce