TPG Capital Might Invest in ‘Stressed’ Jet Airways

New Delhi: If the sources are to be believed, ‘stressed’ airlines Jet Airways might raise money as TPG Capital, a private equity firm, has shown interest in investing in it. Though the deal is yet not finalized and as per the information provided by the sources, it is not even close to finalization.

The sources also revealed that despite the negotiations are at a very premature stage but if things work out then the investment might be more than $100 million. It is also been said that the size of the stake and the investment are yet not clear.

The source also informed that earlier this month, Jet Airways informed its staff that the airlines is running out of money, but this was denied by the beleaguered airlines and it informed that they are confident of cost-cutting and keep flying their planes.

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Soon after this, the earnings reported were deferred earnings and the shares of Jet Airways went down to a three-year low. Analysts said that in this situation is important for the airlines to recapitalize on the immediate basis.

As per the available information and reports published in Mint newspaper, TGP is interested in purchasing a stake in frequent-flyer loyalty programme of Jet Airways. It has also appointed Morgan Stanley seeking to advise on the potential deal.

According to report published in the newspaper, TPG might value Jet Privilege Private Ltd, the loyalty programme, worth $400 million. Though, it also added that the Jet Airways is still engaged with Blackstone Group for a similar deal.

As per the estimates, till the end of March, Jet Airways, partly owned by Etihad Airways is under the debt of $1.16 billion (approx. 81.5 billion rupees). The stressed airline informed that it is not only meeting all the payments obligations to lenders but also looking out for the ways of cost-cutting so as to create ‘a healthier and more resilient business’.