The ₹10 trillion Tata Group may want some of Jet Airways’ parts after the airline’s employees decided to bid
- The Tatas could bid for Jet’s bilateral rights and aircraft, according to an ET report.
- Sanjay Vishwanathan-led AdiGroup and a Jet’s employee consortium might bid for the airline.
- Jet Airways piled up as much as ₹85 billion in debt, and has been declared bankrupt.
Sanjay Vishwanathan-led AdiGroup and a Jet’s employee consortium might bid for the airline.
Jet Airways piled up as much as ₹85 billion in debt, and has been declared bankrupt.
However, each of these bidders want different things. While Sanjay Vishwanathan-led AdiGroup and a Jet’s employee consortium probably want the airline to fly again, Tatas who have their own airline Vistara and also hold a majority stake in budget airline AirAsia -- want to take over some of its assets.
Bilateral rights on the other hand can provide Tatas with traffic rights on international routes.
Jet Airways had been in trouble for years now piling up as much debt as ₹85 billion. The airline had tried to expand during tough times of high fuel prices and excessive competition, taking a hit on its margins. After multiple attempts to bail out the airline, its largest lender State Bank of India had stalled a credit line, which led to its grounding in April.
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