Jet Airways revival plan finally in motion? Hinduja group scouting for a partner

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Published: May 27, 2019 12:29:25 PM

The Hinduja group will bring an investor in a joint venture partnership to take up a stake in the airline.

After Kamark’s exit, only Ashok Chawla and Sharad Sharma remain on Jet Airways board, which ceased operations on April 17.Jet Airways: Representative Image

Naresh Goyal-founded Jet Airways may finally be headed towards revival with Hinduja group reportedly working on an investment plan for the beleaguered airline, CNBC TV 18 reported citing sources. With this, the group will bring an investor in a joint venture partnership to take up stakes in the airline. Also, the stake sale process is expected to complete by the end of this month, CNBC TV 18 report added. The SBI-led consortium of lenders will sell up to 70% stake in the airline. Currently, four investors are in for the Jet revival plan including Etihad Airways and NIIF. Etihad Airways has a 24% stake in the grounded Jet and is likely to hold the same while the National Investment and Infrastructure Fund (NIIF) is expected to buy a 20% stake in the airline and bring in Rs 2,000 crore.

The Hinduja group is jointly going to pick up 24-26% in the airline with a new investor with the infusion of at least Rs 2,300 crores, the TV channel reported. Meanwhile, the Hinduja group and Etihad Airways are expected to submit a proposal from the parties within the next week, Financial Express reported.

The lenders of the airline will be buying a 13% stake in Jet under the revival plan. As the airline requires at least Rs 6,000 crore to run operations and with the Etihad’s proposed Rs 1,700 crore and NIIF’s Rs 2,000 crore, the onus will majorly be on the Hinduja group and the new investor to pump in remaining capital requirement, CNBC TV 18 cited unidentified sources as saying.

Meanwhile, Etihad is working to ensure Jet’s return as a viable and competitive Indian airline, its spokesperson told the TV channel.

The Jet Airways founder, who was currently held at an airport and was denied permission to fly abroad, will not hold more than 3-4% stake in the grounded Jet once the stake sale process is done. Naresh Goyal has about 51% stake in Jet, currently.

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