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aviation | IST

Private equity firms, foreign airlines express interest in Jet airways and Jet privilege 

Mini

Air France-KLM and Delta are likely to have expressed interest in acquiring Jet Airways stake and Jet Privilege.

Jet may have stepped the pedal with its plans to raise capital. Investors have started expressing interest to invest into the company as well as it's loyalty program, sources with knowledge of the matter said.
Jet airways was exploring options to raise capital via a fresh issue. Simultaneously Jet was also looking to sell most of its 49 percent stake in its loyalty program, Jet privilege, for $500 million. Sources say that investors have started sending expression of interests for both.
The company's bankers were running both the stake sales separately. Investors have expressed interest in acquiring a stake in both together. Sources say that investors have expressed interest to invest in Jet Privilege and part equity in Jet Airways.
A consortium of private equity investors led by Blackstone has expressed interest in Jet Airways stake as well as in Jet Privilege and simultaneously. TPG Capital, GIC and Indigo Partners have expressed interest in acquiring stake in only Jet Privilege.
Airline majors have also thrown their hat in the  ring. Air France-KLM and Delta are likely to have expressed interest in acquiring Jet Airways stake and Jet Privilege.
"Jet Airways after interest from prospective investors, is exploring options to club sale of loyalty program with equity dilution;" said a source close to the development. " For now the sale process for both will be run simultaneously  and that the decision to sell to a single investor dependent on value maximisation."
Post receiving expression of interests, sources say jet airways management will begin with engaging with investors. Only post detailed consultations will a formal bidding process begin.
When contacted, Jet responded with a detailed statement on the company's plans.
Following the decision of the Board of Directors, the airline’s management has commenced the execution of its Turnaround strategy. The process includes a careful evaluation of all opportunities in order to ensure the long-term growth and sustainability of the organisation – a process that has the complete support of Jet Airways’ strategic partner – Etihad Airways.
The airline will make the necessary announcements in this regard in due course, post receipt of all necessary approvals and is unable to comment on specific queries at this time.