As per a leading business daily report citing sources aware of the development, Tata Sons is engaged in conducting due diligence to buy a controlling stake in Naresh Goyal's debt-ridden airline Jet Airways. The report highlights that the discussion is led by Tata Sons' Chief Financial Officer Saurabh Agarwal and Jet Airways is being represented by Naresh Goyal, the airline's Chairman.
"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 report quotes one of the two sources as saying.
The airline reported its third straight quarterly loss on Monday and said that it will work towards boosting revenue and lower costs by reducing flights on less profitable routes as well as expand capacity in lucrative markets.
Even as India is emerging as the fastest growing aviation market across the globe and registering 20% annual passenger growth, a host of factors have led to the losses of cash-strapped airline that include weak rupee, high crude oil prices, competitive fares amid price competition and high fuel tax.