India is mulling options to save jobs at Jet Airways India LtdNSE 2.59 %. including asking low-cost carrier SpiceJet Ltd. to consider taking over some of the debt-laden company’s aircraft, people with knowledge of the matter said.
The proposal involves SpiceJet, led by Chairman Ajay Singh, acquiring as many as 40 of Jet Airways’ grounded planes that are owned by lessors, one of the people said, asking not to be identified as discussions are preliminary. The government has also reached out to other carriers, the person said.
Prime Minister Narendra Modi is keen to avoid the collapse of an airline that employs about 23,000 people, weeks before elections. The need to save jobs at the beleaguered carrier became urgent this week after lenders led by State Bank of India failed to convince Etihad Airways PJSC, which owns 24 per cent of Jet Airways, to infuse funds into the Indian carrier.
