Aviation

Jet Airways plans to keep significant stake in JetPrivilege: report

Updated : November 26, 2018 08:40 AM IST

Jet Airways is looking to sell only a part of its 49.9 percent stake in Jet Privilege: report

The airline is aggressively looking to raise cash in order to remain in the business as high fuel prices, weak rupee and intense competition have hit its financial health.

Jet Airways plans to keep significant stake in JetPrivilege: report

Crisis-hit Jet Airways has no plan to completely exit its loyalty programme JetPrivilege even if it receives a profitable proposal, Mint reported.

Jet Airways is looking to sell only a part of its 49.9 percent stake in Jet Privilege, and will keep a significant stake after the sale, a person with the direct knowledge of the matter told Mint.

“Jet Airways will not completely exit JetPrivilege even if it finds a buyer who’s willing to pay a good valuation,” the person mentioned above told the newspaper. “At present, a large part of JetPrivilege’s revenue comes from redemption of Jet Privilege miles on Jet Airways flights or those on its network. Therefore, the airline will want to stay connected to its loyal customer base through Jet Privilege,” the person added.

A spokesperson for Jet Airways told the newspaper that the airline is continuing to “pursue fundraising initiatives” but declined to comment on specific plans.

Jet Airways is grappling with financial woes and is in discussions with several investors for raising funds.

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