Reliance eyes 6-7% stake in Jet Airways

Mumbai: Mukesh Ambani-controlled Reliance Industries Ltd (RIL), India’s largest private company by revenue, is in talks with the country’s largest private carrier, Jet Airways (India) Ltd, for picking up a small stake in the airline, according to a person familiar with the development.
This person, who did not want to be identified, said Reliance is looking at 6-7% stake in Jet Airways, which is expected to post a loss in the last fiscal year owing to high jet fuel cost and intense competition.
The idea behind buying a minority stake in Naresh Goyal-promoted airline stems from Reliance’s plans to be associated with the proposed cargo airline venture of Jet Airways, but the infusion will also come at a time when Indian airlines are bleeding money.
Reliance is in the process of developing two special economic zones (SEZs) spread over 10,000ha in Mumbai and Haryana and is exploring buying cargo planes for shipping out the goods generated in these SEZs.
17/06/08 P.R. Sanjai/Livemint

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Categories: Jet Airways Jun 2008