Quartet in talks to revive Jet Airways
The Hinduja group, Etihad Airways, AdiGro Aviation and Jet founder Naresh Goyal are in discussions to revive the airline
- Published 23.05.19, 12:27 AM
- Updated 23.05.19, 12:27 AM
- 2 mins read
As many as four entities are now trying to mould an alliance to rescue Jet Airways, which has ceased flying for more than a month even as efforts to find a suitable buyer for the ailing carrier have come to nought.
Sources said the Hinduja group, Etihad Airways, London-based AdiGro Aviation and Jet founder Naresh Goyal are in discussions to revive the airline, which owes more than Rs 8,500 crore to banks.
AdiGro has held parleys with Etihad and Jet lenders for a role. The Hindujas have already announced their intentions. “Hinduja Group is evaluating the Jet Airways opportunity,” the group had said in a statement Tuesday.
“Goyal has agreed fully to co-operate with the consortium (AdiGro, Etihad and Hindujas) so that we can take over and run the airline,” a news channel reported quoting a senior executive. Goyal holds 51 per cent in Jet, while Etihad holds 24 per cent. Etihad had submitted a bid for Jet but the Abu Dhabi-based carrier has categorically ruled out a majority stake in the ailing airline,which has seen most of its lucrative slots in airports being allotted to rivals, while its pilots have been poached away by rivals.
The contours of the alliance remain unknown. The sources said meetings with the interested entities have been scheduled later this week.
Shares of grounded Jet Airways advanced over 5 per cent on Wednesday.
On the BSE, the airline’s scrip jumped 5.17 per cent to close at Rs 158.55. Intra-day, it touched a high of Rs 164.90.
The stock has gained 27.75 per cent in the past three sessions. Last Friday, it had closed at Rs 124.1 per share.
On the National Stock Exchange (NSE), the stock settled at Rs 153.80, gaining 1.96 per cent. After opening at Rs 152 a unit, it touched an intra-day high of Rs 165.
In terms of equity volume, over 3.9 crore shares were traded on the bourses.
The proposed consortium will have its task cut out to revive the carrier. Besides, its dues to lenders, Jet has other payment considerations including pending dues of salaries, taking its outstanding to Rs 12,000 crore.
The civil aviation regulator is now in the process of farming out its lucrative international flying rights to its rivals. Jet’s lessors have scrambled to deregister and reposess their planes.
It has also seen the departure of its chief executive and other senior officials, lost hundreds of pilots, cabin crew and engineers to rivals and seen its valuable slots reallocated to competitors, making any rescue harder for a new investor.