Jet Airways loyalty programme stake sale faces headwinds, challenges Noor Arora
Jet Airways proposed stake sale in loyalty programme and equity infusion in the airline is facing challenges but analysts say that the sale alone will not be sufficient to tide over the financial crisis. An overhaul of business along with fleet and network reduction may be required to save the airline from collapse, they said. A report in Mint newspaper on Wednesday said private equity firms Blackstone and TPG Capital have second thoughts over-investment in Jet Airways loyalty programme. While discussions are underway and due diligence is being carried for stake sale in Jet Privilege Private Limited, no firm offer has been given. The concern is primarily around Jet Airways financial health. A loyalty programme will not have a value if the airline's survival itself is at stake, the suitors are believed to have told the airline.
ARTICLE SOURCE: BS