Modi has asked Tata to explore buying Jet stake, sources say

Indian Prime Minister Narendra Modi’s government has sought Tata Sons' help to rescue struggling Jet Airways India, people familiar with the matter said. Tata Sons is in talks with the government about a potential haircut to state-run banks on Jet’s loans as part of the plan, while Airports Authority of India may forgo some of its dues, one person said Thursday. The Tata Sons board is due to deliberate on the matter Friday, the people said. The structure of the potential deal has not been finalized, they said. One option is to combine Jet with Vistara, an airline venture Tata runs with Singapore Airlines, one person said. India’s Economic Times said earlier that the companies are weighing a potential all-stock merger of the carriers -- something Jet said was speculative. Jet shares rose 24%, the biggest single-day gain on record, to close at 320.90 rupees in Mumbai. Any investment by Tata Sons will catapult the group to the top league of Indian aviation, dominated by budget carrier IndiGo, while providing a lifeline to Jet, which is falling behind on payments to lessors and staff. A deal that prevents the airline from going bust will save Modi the embarrassment of a business meltdown ahead of a general election due early next year.<br/>