Indian conglomerate Tata Group is planning to submit bids for select assets of Jet Airways (JAI, Mumbai International) during the carrier's ongoing liquidation proceedings in front of the National Company Law Tribunal (NCLT), The Economic Times has reported.
The conglomerate's officials said that it saw no value in acquiring Jet Airways as a company but certain assets are much more interesting to it.
"We were reluctant when it was on the books of the company. Now that it’s with NCLT, one can look at the bilateral rights and whatever is available in terms of fleet to quickly grow our business," a source said.
Tata Group owns 51% stakes in two Indian airlines - LCC AirAsia India (Bengaluru International) (with AirAsia Group) and full-service carrier Vistara (UK, Delhi International) (with Singapore Airlines Group). The latter airline has already added five ex-Jet Airways B737-800s (with a sixth one due for delivery shortly) to its fleet of thirteen A320s and ten A320-200neo.
"With demand evidently remaining unfulfilled, we like other airlines have sought to get more aircraft into our fleet, including those grounded at present. Acquiring (Jet’s) Boeings makes our otherwise Airbus A320 fleet asymmetric but it will at least service the gap even if temporarily," Vistara Chairman Bhaskar Bhat said.
AirAsia India previously said that the costs of fleet diversification would outweigh the benefits of adding ex-Jet B737s. The LCC operates twenty-one A320-200s, the ch-aviation fleets module shows.
Following Jet Airways' grounding in mid-April 2019, the Indian government temporarily reallocated most of its slots at the most congested airports, particularly at Mumbai International and Delhi International, as well as its international traffic rights.
According to the International Business Times, Etihad Airways and Qatar Airways are also interested in buying some of Jet Airways' assets through the NCLT-led process.
The Indian carrier's operating licence is set to expire on July 16.
Jet Airways continues to own just five aircraft - two A330-200s, two B737-800s, and one B737-900. A further seventy-two units, ranging from ATR72-500 turboprops to B777-300(ER)s, previously operated by Jet Airways are currently stored and without a new operator. This number includes five B737-8s delivered to the Indian carrier prior to the type's grounding.
