BENGALURU – Shares in India’s Jet Airways jumped 25 percent on Thursday following media reports that the debt-laden airline was nearing a rescue deal with Indian conglomerate Tata Sons.
Tata SIA Airlines, a joint venture between Tata Sons and Singapore Airlines, which operates domestic carrier Vistara, is eyeing an all-stock merger with Jet, the Economic Times reported earlier in the day, citing sources.
As part of the deal, Singapore Airlines would also buy out Jet founder Naresh Goyal’s 51 percent stake, the report said.
A deal with Jet would transform Tata, India’s largest conglomerate, from a fringe player in the airline industry into the country’s dominant, international carrier.
India is the world’s fastest-growing domestic aviation market with annual passenger growth of about 20 percent, but rising fuel costs, a weak rupee and intense competition have wrought havoc on the finances of carriers such as Jet.