New Delhi: Indian conglomerate Tata Sons is reportedly in active talks to buy controlling stakes in air-carrier Jet Airways, four people aware of the development told news agency Reuters. According to the report, the multinational firm is very interested to take over the air-carrier but is not at a stage of conducting due diligence or looking through non-public data. However, neither Tata nor Jet Airways have officially spoken about the development or speculations. One potential deal structure could include Tata taking over Jet's assets including the planes, leases, pilots and slots but not the whole company, one of the people said. Though it is said that initial level talks between Tata Sons Chief Financial Officer Saurabh Agarwal and Jet Airways Chairman Naresh Goyal is underway.

If speculations are to be believed, the first step is to see if the economics are viable. If at all the economic compatibility makes sense from the cost and strategy perspective, and if Tata can make it work with its other aviation businesses, talks could be initiated further.

As of now, Tata owns and operates two airlines in the country: full-service carrier Vistara, which is in partnership with Singapore Airlines and low-cost carrier AirAsia India in combination with AirAsia Group Bhd.

The deal comes into the picture on the back of various global economic factor including rise in oil prices, depreciation of rupee against US dollar, low fares and the fierce competition which has seen profit dive in the world's fastest-growing aviation market, clocking 20 per cent annual passenger growth.

The acquisition speculations are also being made as the Jet Airways is reportedly struggling to make payments to its creditors including aircraft lessors and employees. Also, the air-carrier has seen its share price plunge 70 per cent so far this year.

People aware about the development also told Reuters that any investment by Tata in Jet is, contingent to Goyal’s stepping down so that Tata has the power to take the decisions necessary to turn the airline around. Currently, Goyal owns 51 per cent of the airline while 24 per cent is held by Etihad Airways.

(With agency inputs)