Tata Group in talks to buy a majority stake in Jet Airways: Report

Tata Group is in talks to buy a majority stake in beleaguered carrier Jet Airways and its loyalty programme, television news channel CNBC-TV18 reported on Monday, citing sources.

Tata Group aims to buy the 51 per cent stake in the airline owned by Jet Airways founder, Naresh Goyal, and Etihad Airways' 24 per cent stake, the channel reported.

Tata said in a statement that it would not comment on speculations. Jet Airways did not respond to a request for comment.

Shares in Jet Airways surged on the news report, closing up 10 per cent on Monday.

India's aviation market is growing at 20 per cent annually, but a combination of rising oil prices, high fuel taxes, a weak rupee, low fares and intense competition have driven carriers into the red.

Jet Airways is making losses and is struggling to pay salaries and meet aircraft lease payments. The airline, which is seeking a cash injection, said in August it would cut costs in excess of Rs 20 billion ($274 million) in two years and planned to raise funds by selling a stake in its frequent flyer programme.

Tata already owns two airline ventures in India - full-service carrier Vistara, in partnership with Singapore Airlines and AirAsia India, along with AirAsia Berhad.

Tata aims to merge Jet with Vistara, sources told CNBC-TV18. It would also buy Jet Airways' loyalty programme Jet Privilege.

 

Mumbai to Manchester services begin

Jet Airways has commenced its flight services to Manchester in the UK from Mumbai, with the maiden flight 9W-130 taking off on Monday morning. With the launch of its fifth non-stop service to/from the UK, which offers over 8,500 seats every week, Jet is now the largest carrier between Mumbai and the UK, the airline said in a release. Manchester is also the 21st international destination on the carrier's network, it added. PTI