Jet Airways India Ltd., the airline which had its credit rating cut to default this month, is weighing a resumption of stake-sale talks with the Tata Group as the carrier is poised to run out of cash, people with knowledge of the matter said.
While its founder and Chairman Naresh Goyal has been discussing a deal with Etihad Airways PJSC, talks with the foreign partner stalled over the latter’s demand that Goyal step aside from his management role, the people said, asking not to be identified as the discussions are private. With Jet Airways set to run out of cash in about a month, the carrier is now looking to restart talks with India’s biggest conglomerate, they said.
Tata said in November that it held “preliminary” talks with Jet Airways though no proposal was made. Acquiring Jet Airways’s business could give the conglomerate’s fledgling aviation unit a shot at dominating the fastest-growing major air-travel market, where fares as low as 2 cents have kept the industry unprofitable for a decade.
A Jet Airways representative said the company does not comment on speculation, while Tata Sons didn’t respond to an email seeking comment.
10/01/19 P R Sanjai/Saloni Shukla/Bloomberg