Shares of Jet Airways (India) rose by 5 percent on Monday amid a news report that the Tata Group plans to bid for some of the airlines' asset.
An Economic Times report citing sources said that as Jet Airways undergoes bankruptcy resolution, the group is interested in assets that it can use to scale up and reduce the gap created by the airlines' exit. It is more comfortable in bidding for the assets now that it's with the NCLT (National Company Law Tribunal).
In November 2018, the Tata Group had withdrawn from talks for a possible acquisition due to worries over liabilities and ownership. The group already has a presence in the aviation sector with two joint ventures- budget airline AirAsia and full service carrier Vistara.
After Jet Airways terminated its services in April, the government had given its slots to its rivals to make up for the fall in capacity that shot up fares. Its slots have been allowed to be used till the end of December by the ministry of civil aviation, the time around when the NCLT wants its insolvency procedure completed.
Meanwhile, Vistara, a joint venture between Singapore Airlines and Tata Sons has been looking to aggressively expand its network. Recently, it obtained rights to launch international flights to Singapore, Bangkok and Dubai.