Blackstone in talks for stake in India’s Jet Air loyalty arm

Bloomberg

Blackstone Group LP is in talks to buy a stake in the loyalty programme of Jet Airways India Ltd., the troubled Indian carrier that’s exploring options to raise cash, people with knowledge of the matter said.
The private equity firm has expressed interest in a deal that could value Jet Privilege Pvt at about 30 billion rupees ($429 million) to 40 billion rupees, according to the people, who asked not to be identified because the information is private. Jet Airways has been seeking a higher valuation for the business, which is part owned by the Indian airline’s partner Etihad Airways PJSC, one of the people said.
Etihad owns 50.1 percent of the loyalty programme, while Jet Airways owns the rest. The transaction being contemplated by Blackstone would see both Jet Airways and
Etihad remain investors in Jet Privilege. Any deal would be dependent on Jet Airways also securing adequate funding for its airline operations, according to the person.
There’s no certainty the deliberations will lead to an agreement, and other suitors could emerge for a stake in Jet Privilege, the people said.
Jet Airways is racing for funds as rising crude oil prices and intense competition in the Indian market eroded its cash amid losses. The carrier said that it’s been evaluating funding options to meet liquidity requirements “on priority” and proactively working on multiple revenue enhancement and cost-cutting measures.
A spokesman for Blackstone said he couldn’t immediately comment. Jet Airways referred to its statement issued, saying reports on any move to monetise its investment in the
loyalty programme are “purely speculative.”