Tata Sons is believed to be in advanced talks with the government about a potential haircut from state-run banks on Jet’s loans while the Airports Authority of India is willing to forgo some of its dues.
Tatas is in initital talks to bail out cash-strapped Jet Airways. Tata Group had begun due diligence of Naresh Goyal owned Jet Airways. Now, sources told Zee Media Bureau that the Prime Minister's office has sought Tata Sons Ltd’s help to revive Naresh Goyal's floundering airlines.
Tata Sons is believed to be in advanced talks with the government about a potential haircut from state-run banks on Jet’s loans while the Airports Authority of India is willing to forgo some of its dues.
The sources further told that the government is keen to save Jet Airways as it's detoriating condition would not reflect good on India's aviation sector.
Jet Airways, however, termed media reports of Tata group carrying out due diligence to acquire the airline as "speculative".
In a response to the clarification sought by the BSE on the news reports, Jet Airways (India) said, "...the subject news is speculative in nature and that there is no discussion or decision in the board which would require a disclosure..."
The board of Tata Sons is likely to meet Friday to discuss a proposal to take over the Naresh Goyal-controlled Jet Airways, which is looking for investors to tide over liquidity crunch that it has been saddled with, according to people familiar with the development.
Airline's deputy chief executive and chief financial officer Amit Agarwal earlier this week had admitted that the company was in talks with "multiple interested parties" for fund infusion as well as selling six of its Boeing 777 planes and a stake in its loyalty progarmme Jet Privilege.
"Tata Sons board is meeting tomorrow (Friday) to consider the proposal to bid for Jet Airways," people in the know of the development told PTI.
While a spokesperson of Tata Sons, which already runs two airlines-- the full-service carrier Vistara in a JV with Singapore Airlines, and the low-cost carrier AirAsia India in JV with Air Asia of Malaysia, refused to comment on "speculation," Jet did not respond to PTI queries on the same.
"We do not comment on speculation," a Tata Sons, which originally owned the present national carrier Air India, spokesperson said when asked for confirmation.
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 "PM Modi urges Tatas to bail out cash-strapped Jet Airways: Sources")
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