Yet another development this week for Jet Airways as another group has been identified as intending to submit an Expression of Interest (EOI) for the collapsed airline. According to Bloomberg and its sources, the Hinduja Group is preparing a bid of its own to acquire the grounded airline. This makes it the second group identified in this latest attempt to rescue Jet Airways.
Who is the Hinduja Group?
Officially beginning its journey in 1919, the Hinduja Group’s business began in the realms of banking and trade. The Group had its headquarters in Iran until 1979 before moving to Europe. Today the group has diversified its investments and operations as explained on their website:
“Hinduja Group then went on to strengthen its businesses with diversifications in the fields of Automotive, Information Technology, Media, Entertainment & Communications, Infrastructure Project, Development, Oil & Specialty Chemicals, Power, Real Estate and Healthcare…The Group employs over 150,000+ people and has offices in many key cities of the world, including India. Firm believers in traditional family values, the Hindujas have all along striven to inculcate the family concept in their business enterprises.”
Sources familiar with the matter have asked not to be identified as deliberations are private. It is also still possible that the group may decide against submitting an EOI.
One source went so far as to say that Hinduja is seeking a partner for its bid. Earlier in the year, Hinduja Group was identified as having an interest in rescuing Jet Airways – particularly in partnership with Etihad. However, Etihad pulled back the proposal and Jet Airways subsequently fell into bankruptcy.
Second interested party
On Sunday we wrote about another group interested in taking ownership of Jet Airways. According to The Hindu Business Line, Hyderabad-based Turbo Aviation Private Ltd might want a piece of Jet Airways. The aviation company already offers charter services and also has plans to launch a budget carrier by the name of TruStar.
While Bloomberg is reporting a January 15th deadline to submit an expression of interest, a December 23rd notice on Jet Airways website indicates that potential bidders have until January 6th to submit their EOI. The deadline was extended from December as leading bidder Synergy Group failed to produce a solid plan.
Conclusion
Any group interested in Jet Airways will need to have deep pockets. The grounded airline owes a large sum of money to creditors. According to Bloomberg, this list includes the State Bank of India and Punjab National Bank, who have claimed 82.3 billion rupees ($1.2 billion USD). A large group like Hinduja may be able to take on this burden and make the airline profitable.
Do you think Hinduja Group has the right business experience to make Jet Airways successful? Or is Turbo Aviation the better group? Let us know what you think by leaving a comment!
We reached out to the Hinduja Group with a request for an official statement. However, we did not receive a response by the time this article was published.
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