Insta
Tata Group Revives Interest To Buy Majority Share In Embattled Jet Airways And Its Loyalty Program
Swarajya Staff
Nov 06, 2018, 02:10 PM | Updated 02:10 PM IST
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
Tata Group has resumed its bid to buy a majority stake in embattled carrier Jet Airways and its loyalty programme, CNBC-TV18 has reported citing sources close to the development.
Tata Group is eyeing both the 51 per cent stake in the airline owned by Jet Airways founder, Naresh Goyal and Etihad Airways' 24 per cent stake.
Tata operates two airline ventures in India - full-service carrier Vistara, in partnership with Singapore Airlines and AirAsia India, along with AirAsia Berhad.
Tata hopes to merge Jet with Vistara and also buy Jet Airways' loyalty programme Jet Privilege. The Jet privilege loyalty programme was valued at around $900 million some time ago, and Goyal’s 49 per cent stake in it should theoretically be valued at just under half that.
Late last month reports emerged that in a desperate, last-ditch effort to rescue the fast sinking airline, Jet Airways has reached out to Reliance Industries Ltd (RIL) chairman Mukesh Ambani and chairman emeritus of Tata Group Ratan Tata.
Jet Airways founder Naresh Goyal, who owns a controlling stake of 51 per cent in the airline, was also reported to be looking at an overseas airliner as a potential fundraising source.
According to industry resources, Tata Group had evinced keen interest in bailing us out the cash-strapped airliner, but negotiations reached a stalemate as the conglomerate wanted complete control and insisted Goyal step aside.
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
Introducing ElectionsHQ + 50 Ground Reports Project
The 2024 elections might seem easy to guess, but there are some important questions that shouldn't be missed.
Do freebies still sway voters? Do people prioritise infrastructure when voting? How will Punjab vote?
The answers to these questions provide great insights into where we, as a country, are headed in the years to come.
Swarajya is starting a project with an aim to do 50 solid ground stories and a smart commentary service on WhatsApp, a one-of-a-kind. We'd love your support during this election season.
Click below to contribute.