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Last Updated : Aug 16, 2018 10:29 AM IST | Source: Moneycontrol.com

Blackstone eyes stake in Jet Airways' loyalty programme JetPrivilege: Report

Etihad Airways owns 50.1 percent of Jet Privilege, while Jet Airways holds the remaining stake.

Moneycontrol News 

US-based Blackstone Group is in talks to purchase a stake in the loyalty programme of cash-strapped Jet Airways, a Bloomberg report says quoting sources.

Blackstone’s offer could value JetPrivilege at about Rs 3,000-4,000 crore, sources told the news agency.

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Etihad Airways owns 50.1 percent of JetPrivilege, while Jet Airways holds the remaining stake. Etihad had bought the stake in 2013 for about USD 150 million.

The proposed deal could see both Etihad Airways and Jet Airways continue as investors in Jet Privilege, the report said.

Moneycontrol could not independently verify the news.

In a statement on Monday, Jet Airways said that reports to monetise its share in JetPrivilege are "purely speculative".

The JetPrivilege loyalty programme allows customers to accumulate air-miles by flying. The air-miles can be used to buy tickets or clothes and groceries from partner merchants.

There is no certainty that the negotiations will result in an agreement, and other offers could emerge for a stake in the loyalty programme, sources told Mint.

Also read - NSE seeks clarification from Jet Airways over $400 million stake sale reports

The airline has been implementing cost-cutting measures and trying to raise funds as it struggles to continue operations.

The company has delayed announcing its results for the June quarter.

Banks are also waiting for auditors to endorse the airline’s financial results, the Bloomberg report said.

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First Published on Aug 16, 2018 10:29 am
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