Jet Airways in talks with NBFCs to raise up to Rs 2,000 cr via forward sales

Jet Airways

Moneycontrol News 

Cash strapped Jet Airways has approached non-banking financial companies (NBFCs) to raise around Rs 1,500-2,000 crore by monetizing forward sales, according to a report in The Financial Express.

Simply put, bookings made through credit cards will go to the concrened NBFC. This may help the airline raise funds immediately to continue its operations.

The airline will in turn forgo bookings worth around Rs 1,600 crore to the NBFCs, the report said. The money made through bookings on the Jet Airways’ website will accrue to the NBFCs instead of the airline.

Jet Airways is also looking to raise $150 million against promoter shares, the report added.

Moneycontrol could not independently verify the report.

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“Jet Airways remains committed to turnaround its business for which it continuously evaluates various funding options to meet its liquidity requirements on priority. We will not be able to comment on any specific proceedings.” A Jet Airways spokesperson said in response to a query by The Financial Express.

The struggling airline is also in talks with private equity firm Blackstone Group to purchase a stake in JetPrivilege, Bloomberg reported on Thursday.

The airline had reportedly approached the State Bank of India (SBI) for financial assistance, but SBI chairman Rajnish Kumar has said the airline has not approached the lender for funds.

Jet Airways has delayed the announcement of its financial results for the June quarter. The company on Friday said the board will meet on August 27, 2018 to approve the financial results.