Jet airways Crisis: Hinduja Group may take over Jet Airways, says source report. Lender to Jet Airways and Etihad Airways offered a stake in the airlines to Hinduja Group.
There is no clarification from the Hinduja Group so far. Hinduja Group runs the business in 10 sectors like IT, Power, Automotive, Healthcare and Real Estate and Cargo services with Lufthansa. Hinduja group also owns Ashok Leland, India’s 2nd largest truck brand by sell. Hinduja is not in the airline sector till now, but it is showing interest in it after the Gulf carrier approached to the head of Hinduja Group, GP Hinduja.
Etihad airway is the only bidder shortlisted by Jet’s lenders among all the entities. It will submit the bid on Friday. There are around 8400 Cr. loans pending on Jet Airways, and Etihad Airways said it wouldn’t be able to invest over Rs 1700 Crore. Etihad is seeking for a partner in stakes by restricting their stakes to 24% and wants a 70-80% haircut on loans from banks. Etihad currently owns 24% stakes of Jet Airways, which makes it the major partner of the grounded airlines. Naresh Goyal owns 51% of stakes and rests with the public.
Jet stopped it’s all operations on 17th April, this year after it ran out of cash to operate more. It failed to raise funds and now lenders are trying to tun a bid process to get a new investor. Meanwhile, top four management CEO Vinay Dube, Deputy CEO and CFO Amit Agarwal, CPO Rahul Taneja and Company Secretary Kuldeep Sharma have also resigned on Tuesday and Wednesday of this week.
Stopping of operations by Jet Airways left over 750 vacant slots at Indian airports. Almost 480 slots have been given to other Airlines like SpiceJet, IndiGo, AirAsia and GoAir. Hopefully soon Jet gets a new owner and back to life.
Read related news: Effect of Jet Grounding on India Cargo Industry.