Wednesday, July 03, 2019

Jet Airways saga: Tatas eye few assets but insolvency cases yet to allow piecemeal bids

Tata Group's interest in Jet Airways may be limited to some of the airline's assets, and the conglomerate may not prefer to bid for the carrier as a whole.

Jet Airways' obligations, including debts of over Rs 8,000 crore to banks, is one main hurdle that may keep the Tata Group from bidding for the whole company.

The Group is said to be keen on Jet Airways' fleet and flying rights. The airline originally had a fleet of 120 aircraft, but around 100 of them have been de-registered. And its flying rights have been distributed to competition, though for a limited period.
Moneycontrol was the first to report about the conglomerate reviving its interest in Jet Airways, months after deciding not to do so.

"The Tatas are not interested to take on anymore liabilities, as both their present investments in the aviation space is yet to make money," said a senior executive from the industry.

At present, the group has two investments in the sector -- Vistara through its joint-venture with Singapore Airlines, and AirAsia India, in which it partners with AirAsia Berhad of Malaysia.
03/07/19 Prince Mathews Thomas/moneycontrol.com

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