News Leak Centre

Tata Group To Acquire Jet Airways, End Ties With Air Asia

Tata Sons have reportedly been planning to buy out the ailing Jet Airways. It has been reported that the airline suffered consecutive 3rd Quarterly Net Loss at Rs.1297 for the month of July and September this year. The Naresh Goyal owned ,Jet Airways, is said to not have been able to pay on time to its creditors, including aircraft lessors and employees.

In the first round of the acquisition,  TATA Sons is said to be acquiring a controlling stake while the 2nd round would be the purchase of the remaining stake by Singapore Airlines. Tata Sons have a joint venture with Singapore Airlines and collectively operates Vistara from Delhi-NCR.

Tata Sons also plans to end ties with the Malaysia owned Air Asia Berhad where the Tata Sons have 49 percent stake. Air Asia have 19 airline.

It has said that Tata Sons will be concentrating on operating its Vistara and buying out Jet Airways. Although, officials of Jet Airways have said that it is  ‘speculation’.

JetAirways have 124 fleets operating, with 51 percent owned by its founder, Naresh Goyal and his wife, Anita Goyal. Etihad Airlines owns 24 percent in it and it was the first private airline that operated post liberalization.

Big shakeup! Cyrus Mistry removed as Tata Sons chairman, Ratan Tata steps in as Interim chairman.

In a surprise move, Tata Sons today removed Cyrus Mistry as its Chairman, nearly four years after he took over the reins of the over $100 billion salt-to-software conglomerate.

Ratan Tata makes a comeback, taking over as the company’s interim boss for 4 months.

A selection panel has been formed to find a successor in four months. The committee will include Ratan Tata, Ronen Sen, Venu Srinivasan, Amit Chandra. The decision has been taken after the board meeting today.

There were no reasons given for the change of leadership of the man who was brought in with much fanfare but it is believed that Tata Sons was unhappy with Mistry’s approach of shedding non-profit businesses, including the conglomerate’s steel business in Europe, and concentrating only on cash cows.

“Tata Sons today announced its board has replaced Mr Cyrus P Mistry as Chairman of Tata Sons. The decision was taken at a board meeting held here today,” a Tata Sons statement said.

Tata Sons is the main holding company of the group.