Tata Sons chairman N Chandrasekaran is pitching for the acquisition of cash-strapped Jet Airways, even as Chairman Emeritus Ratan Tata has reservations about the proposed deal, multiple sources told CNBC-TV18.
Tata Sons board will likely discuss the Jet Airways acquisition plan on Friday and if board approves, the proposed deal may "move quickly", said a source familiar with the developments.
Tatas may also explore the option of picking up some of the assets of the troubled carrier and not the entire company, the sources said.
The government is also keen to see Jet-Tata deal go through as it doesn't want another full service carrier to face bankruptcy.
Vijay Mallya-led Kingfisher was grounded in 2012 after massive debt, failing revenues and consequently failing safety procedures forced its engineers to down tools.
CNCB-TV18 reported earlier this month that Jet Airways promoter Naresh Goyal has been reportedly approaching top corporate houses, including the Tata, for a possible equity infusion.
The salt-to-software Tata Group is keen on buying out the promoters, Naresh Goyal and family, and the foreign equity partner, Etihad’s stake in Jet Airways. Currently, Jet Airways promoters hold 51 percent stake in the carrier and Etihad holds 24 percent.
The Tatas have long been interested in aviation. Despite issues around crude and ATF (air turbine fuel) prices, the long-term growth story of aviation seems to be positive.
First Published: IST