Hinduja Group eyes opportunity with Jet Airways

Last Updated: Tue, May 21, 2019 20:20 hrs
Jet Airways B777

The Hinduja Group, a diversified Indian major conglomerate has been reported as expressing keen interest in buying a stake in debt-ridden Jet Airways.

In a statement released on Tuesday, the Hinduja Group confirmed of evaluating its prospects in Jet Airways. "Hinduja Group is evaluating the Jet Airways opportunity," the statement read.

A few days ago, a senior official from Hinduja was reported as saying that the group was exploring a turn-around in Jet Airways in association with Etihad. In fact, the group had reportedly sought Naresh Goyal's, the lead promoter, permission in joining talks for Jet Airways.

Financial troubles for Jet Airways had been brewing for some time. Debts as large as Rs 9,000 crores and a head-count of approximately 20,000 meant huge costs on maintaining operations. The airline stuttered for a brief period before shutting operations abruptly on April 17 2019.

Talks between SBI-led lenders and the management for immediate cash of Rs 1,000 crores a week prior to shutdown bore no results. SBI Caps which has been scrutinizing and talking to various entities for a potential buyer is reported as working out on various ways to ensure Jet Airways flies again.

The Hinduja Group has not announced how much it was willing to spend for a stake. However, last week a lesser known company named Darwin Group showed interest in buying Jet's assets. And, Darwin Group of companies was willing to shell as much as Rs 14,000 crores for those assets.

The Hinduja Group has significant interests with organisations such as Ashok Leyland, Gulf Oil, IndusInd Bank.