Indian conglomerate Tata Sons is conducting due diligence on Jet Airways as it explores the purchase of a controlling stake in the cash-strapped airline, Mint newspaper reported on Tuesday citing two people directly aware of developments.
Saurabh Agarwal, chief financial officer of Tata Sons, is leading the discussions while Jet Airways is represented by its chairman Naresh Goyal, the newspaper said, citing the sources who it said asked not to be identified as the talks are private.
“An in-house team of Tata Sons is currently conducting due diligence on Jet Airways, which is expected to continue for the next few weeks,” the newspaper quoted one of the two people as saying.
After posting its third consecutive quarterly loss on Monday, debt-laden Jet Airways said it planned to cut flights on less profitable routes and add capacity in more lucrative markets, as part of efforts to lower costs and boost revenue.
A combination of rising oil prices, high fuel tax, a weak rupee, low fares and price competition has seen profit dive in the world’s fastest-growing aviation market, which is clocking 20 percent annual passenger growth.