Monday, July 01, 2019

Tatas are keen to buy Jet's grounded fleet, bilateral flying rights

As Jet Airways undergoes bankrupcty resolution, the Tata Group is looking to bid for the airline's aircraft and bilateral rights to scale up and tap the gap created by the exit of the Naresh-Goyal led airline.

The Tata Group has two joint ventures in the aviation space. One is with budget airline AirAsia and the other is its stake in full-service carrier Vistara, a joint venture with Singapore Airlines. Both Vistara and AirAsia India, along with their partners, are quietly putting together an aggressive plan to become a formidable force in the skies. AirAsia India plans to double their fleet from 21 to 40 aircraft by April next year and also plans to start international operations to Sri Lanka, Thailand and Malaysia by September 2019.
Vistara recently got permission to fly abroad after a delay of over a year due to the investigation in the alleged bribing and lobbying charges against AirAsia India. To back their plans, the Tatas, according to sources, have lined up Rs 4,500 crore for the two airlines. If everything goes to plan, they would be the only player in India to straddle both the low-cost carrier as well as the full-scale service space in the international arena among private players, Business Standard reported earlier.

According to a report in Economic Times, Vistara has sought to get more aircraft into its fleet, including those grounded at present. “Acquiring (Jet’s) Boeings makes our otherwise A320 Airbus fleet asymmetric but it will at least service the gap even if temporarily.” Tata SIA Airlines chairman Bhaskar Bhat was quoted as saying by ET. Clearly, with Jet Airways out of the picture, the airline is finally ready for take off with a new international flight plan.
01/07/19 Business Standard
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