(MENAFN - Bangladesh Monitor) NEW DELHI: India business giant Tata Group said they are ready to buy a stake in Jet Airways, India's largest private sector airline currently in financial crisis and unable to pay staffs in full for the month September.
Indian business conglomerate Tata Group has held preliminary discussions to buy a large stake in debt-laden Jet Airways, the Times of India reported on October 18.
Jet Airways has been facing a financial crunch amid rising oil prices and a depreciating rupee. In a bid to revive itself, Jet said in August it will inject funds and cut costs to turn around the business, without elaborating further.
Tata has sought management control of Jet, seeking at least 26 per cent initially and another 26 per cent via an open offer later, the paper said.
Jet Airways, which claims the report was speculative, but an insider who is privy to the parleys said that they are opposed to give Tata Group the control of management against a stake of 25 per cent.
A Jet Airways representative said the news report was speculative, while the Tata Group declined to comment.
Tata Sons is the holding company for the Tata Group which already has two aviation ventures in India - Vistara with Singapore Airlines and AirAsia India with the Malaysian budget carrier AirAsia Group.
Jet Airways Chairman Naresh Goyal is the majority owner of the airline in which Etihad Airlines also owns a stake. Etihad is also facing heading wind and has instead offered Jet Airways to buy-back its stake.
Aviation experts understands that Jet Airways was looking for eligible financial partner to bailout the carrier and enable to cruise straight and level sans head wind.