Jul 11, 2017: Global carriers Lufthansa and KLM-Air France, bulge bracket private equity funds including the Blackstone Group, KKR & Co and TPG Capital along with US airlines Delta are reportedly interested in investing in India’s second largest airline Jet Airways, according to an Economic Times report.

Jet Airways is looking to raise capital to fund its fleet induction and expansion plans.

The airline, in which Abu Dhabi’s Etihad Airways owns a 24 percent stake, has adopted a network strategy independent of its investor and has roped in JP Morgan to raise funds, including through a possible stake sale. However, no binding offers have come in as yet.

Indian rules allow 100 percent FDI in scheduled commercial airlines but foreign airlines, though, are barred from holding equity stake in Indian carriers above 49 percent. With Etihad already on board, Jet only has limited headroom and can bring on board another strategic partner by selling up to 24 percent stake in the airline.

With a current market cap of Rs 6,880.59 crore, a 24 per cent stake sale could help raise Rs 1651.2 crore ($256 million).

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