Blackstone Group LP is reportedly interested in buying a stake in Jet Airways’ loyalty programme JetPrivilege Pvt.
According to people with knowledge of the matter, the Blackstone offer values the business at about $429 million, although the size of the stake is unclear.
That would give some relief to troubled Jet Airways which may have to refinance about $400 million of debt just to stay afloat, says Kapil Kaul, South Asia CEO for CAPA Centre for Aviation.
However it is far from a done deal.
Etihad Airways owns 50.1% of JetPrivilege, and Blackstone will only go ahead if Jet Airways has secured adequate funding to guarantee its long term airline operations.
If a deal goes through, both Jet and Etihad would continue to hold a shareholding in the business.
JetPrivilege has about eight million members and made a profit last year.
The airline’s debt has ballooned to an estimated INR94.3 billion according to Bloomberg data.
Its shares have plunged more than 60% this year, giving it a market value of just $461 million.
