Just more than a month after Jet Airways grounded its flight operations due to severe cash crunch, the diversified conglomerate Hinduja Group has shown interest to bid for the sinking airline. The Hinduja Group has claimed that it will start the process of bidding for Jet Airways in the ongoing week.
“Hinduja Group is evaluating the Jet Airways opportunity,” a spokesperson for the Hinduja Group said, confirming media reports about its interest in Jet Airways.
The buzz about the issue tells that the Hinduja Group has already been given approval from Jet’s prime stakeholders, including founder Naresh Goyal and Etihad. While the Goyal family owns 51% of the airline, Etihad is the second largest shareholder with 24% stake.
Moreover, various sources have revealed that the Hinduja Group has also engaged investment bankers led by SBI consortium to take reasonable steps with regards to the matter.
As a matter of fact, the inclination of the Hinduja Group towards Jet Airways came into effect after Goyal and Etihad approached the Group to invest in the debt-ridden airlines and to safe it from the clutches of heavy loans.
Since, Goyal stepped down from his position as a founder of India’s oldest private airlines that competed against state-owned rivals such as Air India and Indian Airlines, lenders to Jet Airways, led by SBI are seeking investors to recover their dues of Rs 15,000 crores.
Ironically, the previous week, before the step-in of the Hinduja Group into the Jet crisis, SBI chairman Rajnish Kumar said that the future course of Jet Airways was expected to emerge in the weeks ahead.
Therefore, after shutting down its services and giving an unemployment distress to more than 400 of its employees in April 2019, India’s premier private airline Jet Airways became the second major aviation giant to discontinue its operations in an unprecedented manner after Kingfisher airlines in 2012.