Tuesday, July 09, 2019

The Tata Group has two airlines and two more to choose from—Air India and Jet Airways

It is not every day that an acquirer gets to choose between two country’s largest airline companies to acquire.
But the country’s oldest business house, Tata Group is in that lucky position.
 Jet Airways which was grounded in April due to debt as much as ₹8,500 crore is currently looking for a buyer, even as it is undergoing bankruptcy proceedings.  State-owned Air India, on the other hand, is operational but also raking in record losses.
In the Budget 2019 announced on July 5, the Finance Minister said that they will revive divestment talks. A report by Business Standard says that they could expedite the process by October itself. And that, amongst others Tata is one of the parties interested.
 Air India might be on a quick lookout for a buyer, as the stressed airline has been scrambling to pay salaries. In fact,reports say that the company will not be able to pay salaries beyond October.
 In fact, the Tata Group has interests in two airlines- Vistara which is a domestic airline, and also stake in international carrier Air Asia.
They have been trying to expand their horizons by acquiring company, and this presents a dual opportunity. Earlier reports have suggested that Tatas could bid for Jet’s international flights rights and aircraft.
 Ever since the airline went in for bankruptcy, the group’s view on it has changed. “There is no value in buying the company now anyway,” an official told ET, and the group seems to be interested in buying parts of it.
08/07/19 Katya Naidu/Business Insider

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