March 14, 2013 / 11:48 IST
Jet Airways has denied media reports on selling its frequent flyer program to Etihad Airways, the company officials confirmed to CNBC-TV18.
The stock of country's largest private airline company today rallied more than 4 percent on reports that the company may sell 50 percent stake in its frequent flier unit to Etihad Airways for about USD 150 million.
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Should aviation regulator interfere in fixing airfares?Currently, Jet Airways manages its JetPrivilege frequent flier or loyalty programme in-house. It also has several tie-ups with hotels, retail and lifestyle brands. In August 2012, the airline's board had secured shareholder approval for setting up a marketing service company to manage the loyalty programme.
Jet Airways has been in talks with Ethihad Airways for selling 24 percent stake for some time now, but the deal keeps getting postponed due to several issues.
Last week, CNBC-TV18 learnt from sources that both Jet and Etihad finally agreed on several sticky issues of board and management control, and are working on ironing out remaining differences.
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