Jet Airways is certainly in dire straits but could help be on the horizon? With all planes grounded since April due to large debts and no funds to keep the airline running, share prices have fallen 75% and all attempts to find a buyer for the airline have so far failed. But today we see a share price rise of 5%, and while that’s not going to make up for the recent losses, it’s certainly an indicator that there has been some positive news regarding this ill-fated airline.
The Tata Group show an interest
While nothing is finalized, the Tata Group has shown an interest in making a bid for Jet Airways under the Insolvency and Bankruptcy Code (IBC). The Tata Group was established back in the 1860s and is one of India’s largest conglomerates. The group also has previous experience in the aviation industry, running Vistara and AirAsia India which could be a positive sign.
Further interest from other parties
Additionally there has been interest shown by the Mumbai based conglomerate the Hinduja Group and also Etihad Airways which already holds a 24 percent stake in Jet Airways, so it would certainly be in its interests to see the airline back in business and it has been in discussions with AdiGroup regarding a possible partnership for a Jet Airways investment. It has also been reported that Qatar Airways is looking for a domestic partner in order to make a bid.
Jet Airways Flying License under scrutiny
All potential bidders will likely to be awaiting word from the regulators regarding Jet Airways Air Operator Certificate which is currently under scrutiny. If this is revoked, it will massively affect the appeal of an investment in the airline.
Twitter user suggests Mahindra Group buy Jet Airways
Mahindra Group chairman Anand Mahindra is well known for his amusing comments and he certainly didn’t let down his Twitter followers when he was tweeted with the suggestion that he should buy Jet Airways and change the name to Mahindra Airways. In response Mahindra tweeted “Remember the quote: If you want to be a millionaire, start with a Billion dollars and then start (buy) an airline!” So perhaps Jet Airways isn’t at the top of the Mahindra Group shopping list.
All is not lost but the battle is far from over
So it seems there is interest in Jet Airways but nothing is certain. The airline seems to have had several interested parties over the last few months, none of which has ever come to fruition. Even for the large conglomerates, purchasing an airline is a massive investment, and with Jet Airways in such financial bad shape and with no aircraft in service, this is not going to be a decision anyone will make lightly. Will any business ultimately take the risk of taking on this huge and expensive challenge? That remains to be seen.
Emily is an avid writer with a passion for the travel industry. She also loves learning and writing about nutrition and healthy living. Emily is based in the UK.