New Delhi : Luxury hospitality chain The Oberoi Group is planning to put Oberoi Flight Services on the block after the air-catering business suffered a jolt following the grounding of Jet AirwaysNSE -4.97 %, its primary client, according to people familiar with the matter.
The group, which witnessed a drop in revenue and fell into the red in the quarter ended June, has approached investment bankers to initiate an exit, the sources said. The aviation crisis triggered by the closure of Jet and aggravated by a debt laden Air India – its second largest customer -- is said to have had an impact on the air catering business.
“We do not comment on market speculation. Jet Airways was EIH flight kitchen’s largest account, hence the closure of the airline did impact our flight catering business. We have, however, put in place a plan to replace the business that we had from Jet,” the company said in a statement.
However, sources said a sale is on the cards. “Oberoi flight services is on the block. They have decided to exit that business. Most likely, there could be an announcement in quarter one of the next calendar year. There is a deck circulating in investment banking circles for the sale,” said a source.
08/10/19 Anumeha Chaturvedi/Economic Times
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The group, which witnessed a drop in revenue and fell into the red in the quarter ended June, has approached investment bankers to initiate an exit, the sources said. The aviation crisis triggered by the closure of Jet and aggravated by a debt laden Air India – its second largest customer -- is said to have had an impact on the air catering business.
“We do not comment on market speculation. Jet Airways was EIH flight kitchen’s largest account, hence the closure of the airline did impact our flight catering business. We have, however, put in place a plan to replace the business that we had from Jet,” the company said in a statement.
However, sources said a sale is on the cards. “Oberoi flight services is on the block. They have decided to exit that business. Most likely, there could be an announcement in quarter one of the next calendar year. There is a deck circulating in investment banking circles for the sale,” said a source.
08/10/19 Anumeha Chaturvedi/Economic Times
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