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Tata Group in talks to buy a majority stake in Jet Airways: Report

Tata already owns two airline ventures in India - full-service carrier Vistara, in partnership with Singapore Airlines and AirAsia India, along with AirAsia Berhad

Aditi Shah | Reuters  |  New Delhi 

Jet Airways
Jet Airways

is in talks to buy a majority stake in beleaguered carrier and its loyalty programme, television channel CNBC-TV18 reported on Monday, citing sources.

aims to buy the 51 per cent stake in the airline owned by founder, Naresh Goyal, and Airways' 24 per cent stake, the channel reported.

Tata said in a statement that it would not comment on speculations. did not respond to a request for comment.

Shares in Jet Airways surged on the report, closing up 10 per cent on Monday.

India's is growing at 20 per cent annually, but a combination of rising oil prices, high fuel taxes, a weak rupee, low fares and intense competition have driven carriers into the red.

Jet Airways is making losses and is struggling to pay salaries and meet aircraft lease payments. The airline, which is seeking a cash injection, said in August it would cut costs in excess of Rs 20 billion ($274 million) in two years and planned to raise funds by selling a stake in its frequent flyer programme.

Tata already owns two airline ventures in India - full-service carrier Vistara, in partnership with Singapore Airlines and AirAsia India, along with

Tata aims to merge Jet with Vistara, sources told CNBC-TV18.

It would also buy Jet Airways' loyalty programme Jet Privilege.

Mumbai to Manchester services begin

Jet Airways has commenced its flight services to Manchester in the UK from Mumbai, with the maiden flight 9W-130 taking off on Monday morning. With the launch of its fifth non-stop service to/from the UK, which offers over 8,500 seats every week, Jet is now the largest carrier between Mumbai and the UK, the airline said in a release. Manchester is also the 21st international destination on the carrier's network, it added. PTI

First Published: Mon, November 05 2018. 19:01 IST
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