PMO nudging Tata group to bail out Jet Airways: Sources

New Delhi: Amidst reports that debt-laden Jet Airways is nearing a rescue deal with Indian conglomerate Tata Sons Ltd, sources have told Zee media that the PMO is nudging the Tatas to bail out the second largest Indian airlines by market share.

Sources said that the PMO is trying to ensure that the uncertainty in the aviation market is reduced to a certain extent by asking the Tata group to explore buying the struggling airline.

Sources also added that the PMO is trying to pave way for a deal which may include the lenders and other stakeholders of the cricis-laden airline taking a haircut. Furthermore, the Airport Authority of India (AAI) may also forgo its liability towards the struggling airline.

Naresh Goyal along with his family owns 51 per cent stake in the company, Gulf carrier Etihad Airways owns 24 per cent in the cash-strapped airline.

Earlier this week, Jet reported Rs 1,261 crore in losses for the July-September quarter against a profit of Rs 71 crore year on year, making it the third straight quarters of heavy losses. This had the airline also putting as many as six of its Boeing 777s on sale to part-fund liquidity.

Jet shares, which had fallen 69 percent this year, rose as much as 30 percent before ending almost 25 percent higher at 320.9 rupees on record volumes on Thursday. That was their best closing level since late August and their best performance in percentage terms since listing in 2005.

The financial crunch in the company has resulted in delayed payments to its vendors and salaries to a section of its over 16,000 employees.