International Conglomerate Hinduja Group is preparing a bid to buy Jet Airways (JA). People close to the discussion said to Bloomberg that an expression of interest may be submitted by Hinduja Group by January 15. The group is seeking a partner to bid.
This is not the first time the Hinduja Group was said by media as an interested party to buy the now bankrupt Jet Airways. Earlier this year, Hinduja Group considered partnering with Etihad Airways to Bid for Jet Airways but the Etihad’s interest diminished. Industry insiders have said that Hinduja Group may not bid for JA or new bidders may emerge.
Once the largest private airline, Jet Airways went bankrupt and halted operations in April, 2019. Media reports say that some of the biggest causes of this failure are poor management, failing to find strategic-investors, poor investment (Naresh Goyal’s purchase of Air Sahara for 500 Million USD in 2006 which turned unproductive in 2015 and thereafter went dormant). The biggest mistake Jet Airways ever made was underestimating the low cost Airlines like Indigo, Spice Jet and Go Air.
SBI and Punjab National Bank have claimed Rs, 8549.70 crores from Jet Airways. Some of its assets have gone to other airlines and some aircrafts are set in storage. Creditors are excepting bidders and it may be Hinduja Group.