Jet Airways crisis: Monetising privilege points might not shore up the sagging fortunes of cash-strapped airline
5 years, 9 months ago

Jet Airways crisis: Monetising privilege points might not shore up the sagging fortunes of cash-strapped airline

Firstpost  

Jet Privilege has partnerships with 25 foreign carriers and any member can choose a carrier of choice to fly abroad by redeeming their JPMiles, although taxes need to be paid separately for such flights. Well, JPPL is the custodian of Jet Airways’ loyalty programme which is nothing but frequent flier-cum-high class flier programme. Can JPPL salvage the sagging fortunes of Jet Airways as State Bank of India and other banks have exposure to the tune of massive Rs 8,500 crore? Can JPPL securitise the entire expected revenue of Rs 7,300 crore or so from its privilege programmes which in turn can be handed over to its parent Jet Airways so that it can emerge from its long financial crisis with its head held high?

India Financial Company Crore Airways Jet Jet Airways Privilege Spv Jppl Jpmiles  financial  airways  crisis  crore  sagging  privilege  fortunes  points  jppl  company  entire  jet  cashstrapped  rs  monetising  shore  jpmiles

History of this topic

Cash-strapped Jet Airways lenders attempt to sell bankrupt carrier again; to call bids for asset sale by 20 July
5 years, 5 months ago

Cash-strapped Jet Airways lenders attempt to sell bankrupt carrier again; to call bids for asset sale by 20 July

Firstpost  

Last month, JetAirways’ creditors, led by State Bank of India, took the airline to the bankruptcy court after failing to agree on a revival plan New Delhi: Lenders to Jet Airways will open bids to sell the bankrupt airline on 20 July as they look to recover about 85 billion rupees of loans, two sources familiar with the matter said …

Jet Airways employees’ bailout offer: No harm in trying because buyer apathy in any case stares at banks
5 years, 8 months ago

Jet Airways employees’ bailout offer: No harm in trying because buyer apathy in any case stares at banks

Firstpost  

Unfortunately for Jet Airways employees, there is nothing to leverage with the grounded airline’s net worth in the negative. A group of Jet Airways employees, who had earlier offered to take over the distressed airline, met SBI Caps officials on Thursday to discuss the proposal. SBI Caps told the Jet Airways employees that their proposal would be considered only after …

Jet Airways will do everything to revive airline: CEO
5 years, 8 months ago

Jet Airways will do everything to revive airline: CEO

India Today  

India's Jet Airways is constantly engaging with the government and lenders for a resolution of the current debt crisis and will not leave any stone unturned to revive the airline, its chief executive officer Vinay Dube told television channel ET Now in an interview. "But I would like to think that a flying Jet Airways makes definite sense for them …

Jet Airways revival at stake; shortlisted bidders find no value in parking funds in embattled airline
5 years, 8 months ago

Jet Airways revival at stake; shortlisted bidders find no value in parking funds in embattled airline

Firstpost  

Etihad, which was keen to buy controlling stake in Jet Airways, has reportedly had a second thought to go ahead with the investment process as it could not find any value left in the embattled airline. The hopes for revival of the temporarily grounded Jet Airways received a major blow as all the shortlisted bidders, including its former strategic partner …

Jet Airways grounded: JetPrivilege says members need not worry, JPMiles value, safety remain intact; all you need to know
5 years, 8 months ago

Jet Airways grounded: JetPrivilege says members need not worry, JPMiles value, safety remain intact; all you need to know

Firstpost  

Like the passengers, who booked tickets in Jet Airways before the temporary grounding of the airline and worried about the refund now, the JPMiles earners are also concerned about if they can encash the reward points. JetPrivilege, the company that handles Jet Airways’ loyalty programme JPMiles, in a statement on 17 April said, “We would like to assure our members …

Jet Airways crisis: Lenders keen on resolution outside insolvency law framework in case bidding process fails
5 years, 8 months ago

Jet Airways crisis: Lenders keen on resolution outside insolvency law framework in case bidding process fails

Firstpost  

Running into debt of more than Rs 8,500 crore, Jet Airways has shut down operations temporarily after lenders decided against extending emergency funds for its survival New Delhi: As they explore ways to recover debt, lenders of Jet Airways are in favour of a resolution outside the insolvency law framework in case the ongoing bidding process fails to take off, …

Jet Airways to ground all operations temporarily from tonight as lenders refuse to extend required financial support
5 years, 8 months ago

Jet Airways to ground all operations temporarily from tonight as lenders refuse to extend required financial support

Firstpost  

Jet Airways will be the seventh airline to go down since May 2014 and the 13th one after East West was shuttered Mumbai: With the lenders rejecting a lifeline of Rs 400 crore Wednesday Jet Airways, which has been on a wing and prayer since January, informed exchanges that it is forced to cancel all operations temporarily. An official announcement …

Jet Airways lenders meet finance ministry officials amid shutdown reports
5 years, 8 months ago

Jet Airways lenders meet finance ministry officials amid shutdown reports

Live Mint  

While a discussion on Jet Airways’ revival is going on, no plan has been finalized, said Sunil Mehta, chief executive of Punjab National Bank. Jet Airways’ lenders have carried out a bidding process to sell up to 75% stake in the airline. Etihad Airways PJSC, India’s National Investment and Infrastructure Fund and private equity firms TPG Capital and Indigo Partners …

Jet Airways crisis: Good outcome from creditors-company negotiations better than insolvency, says govt official
5 years, 9 months ago

Jet Airways crisis: Good outcome from creditors-company negotiations better than insolvency, says govt official

Firstpost  

Corporate Affairs Secretary Injeti Srinivas was responding to a query on whether Jet Airways is a fit case to be referred under the Insolvency and Bankruptcy Code New Delhi: As Jet Airways battles acute financial woes, a senior government official Monday said a “good outcome” from the negotiations between the creditors and the company would be better than moving for …

Jet Airways crisis: SBI forgets it is neither debt-ridden airline's promoter nor nation’s conscience keeper
5 years, 9 months ago

Jet Airways crisis: SBI forgets it is neither debt-ridden airline's promoter nor nation’s conscience keeper

Firstpost  

For SBI to say that it has to infuse equity into the nosediving Jet Airways amounts to the worst kind of mixing up of roles At the height of the IL&FS crisis, Life Insurance Corporation of India swore that it could not possibly see its baby go down the chute. LIC, along with a few other public sector financial companies, …

Jet Airways' lenders may acquire substantial stake till new promoters come in: Report
5 years, 9 months ago

Jet Airways' lenders may acquire substantial stake till new promoters come in: Report

Firstpost  

The State Bank of India-led consortium of lenders is working on a resolution plan for the cash-strapped Jet Airways for the last five months. New Delhi: Lenders of Jet Airways are likely to pick up a substantial stake in the debt-laden airline till a new promoter is roped in, sources said. Sources said lenders of Jet Airways might pick up …

State-run banks want Jet Airways chairman Naresh Goyal to reduce stake in carrier to 10%: Report
5 years, 9 months ago

State-run banks want Jet Airways chairman Naresh Goyal to reduce stake in carrier to 10%: Report

Firstpost  

Jet Airways has more than $1 billion in debt, and owes money to banks, suppliers, pilots and lessors—some of whom have started terminating leases with the carrier Mumbai: A group of state-run banks want Jet Airways’ embattled founder and Chairman Naresh Goyal to reduce his stake in the carrier to 10 percent, news channel CNBC-TV18 reported on Thursday, quoting sources. …

Etihad will invest in Jet Airways, but several conditions apply
5 years, 9 months ago

Etihad will invest in Jet Airways, but several conditions apply

Live Mint  

Mumbai: Etihad Airways PJSC, which owns a 24% stake in Jet Airways Ltd, has set several conditions before its next round of proposed investment in the cash-strapped airline. Etihad has also sought completion of the ₹4,000 crore interim financing as per terms agreed upon by Etihad, Jet Airways founder and chairman Naresh Goyal and a group of lenders led by …

Jet Airways planes to be redeployed if no restructure agreed this month, says lessor’s CEO
5 years, 10 months ago

Jet Airways planes to be redeployed if no restructure agreed this month, says lessor’s CEO

Firstpost  

“We have grounded our aircraft, we have control over our aircraft, but we have not terminated the leases and we are waiting for the airline to approve all its restructuring with the State Bank of India,” FLY Leasing CEO Colm Barrington told analysts on results call on Thursday Singapore: FLY Leasing Ltd has grounded three planes on lease to Jet …

Jet Airways shareholders said to have approved bailout plan
5 years, 10 months ago

Jet Airways shareholders said to have approved bailout plan

Live Mint  

Mumbai: Shareholders of Jet Airways Ltd are likely to have approved banks' bailout plan for the debt-laden airline at Thursday's extraordinary general meeting, a person who attended the meeting said. The Jet Airways bailout plan will see conversion of debt to equity in favour of lenders. The Jet Airways bailout plan led by the banks and approved by the board …

Jet Airways may raise ₹4,000 crore via rights issue if Etihad open offer fails
5 years, 10 months ago

Jet Airways may raise ₹4,000 crore via rights issue if Etihad open offer fails

Live Mint  

Mumbai: Jet Airways Ltd may consider raising ₹4,000 crore through a rights issue if the Securities and Exchange Board of India denies an exemption to Abu Dhabi-based Etihad Airways PJSC from making an open offer in lieu of raising its stake in the cash-strapped carrier, said two people with direct knowledge of the matter requesting anonymity. Jet Airways’ promoter and …

Jet Airways defers plans to sell stake in Jet Privilege
5 years, 10 months ago

Jet Airways defers plans to sell stake in Jet Privilege

Live Mint  

Mumbai: Jet Airways Ltd on Friday deferred plans to sell stake in Jet Privilege, its frequent flyer programme that the Naresh Goyal-led management had repeatedly called a lifeline for the beleaguered airline. The decision comes a day after the Jet Airways board approved a bailout plan that takes away Goyal’s position as majority shareholder of the company. The banks-led provisional …

Jet Airways raises ₹250 crore from advance ticket sales to Jet Privilege
5 years, 11 months ago

Jet Airways raises ₹250 crore from advance ticket sales to Jet Privilege

Live Mint  

Cash-starved Jet Airways has mopped up ₹250 crore from advance sale of tickets to its customer loyalty programme Jet Privilege, less than five months after raising money through the same route. Last October, the airline received around ₹258 crore from advance sale of tickets to Jet Privilege. "Similar to what was done in October 2018, JPPL concluded a second Prepaid …

SBI is poised to control 15% of Jet Airways
5 years, 11 months ago

SBI is poised to control 15% of Jet Airways

Live Mint  

India’s largest lender State Bank of India is set to take an equity stake of at least 15 percent in Jet Airways India Ltd. as lenders to the carrier plan to convert part of their loans into equity, people with knowledge of the matter said. Under a new rescue deal in the works, the nation’s biggest full-service airline’s founder Chairman …

How Jet Airways is casting a shadow on India’s coming elections
5 years, 11 months ago

How Jet Airways is casting a shadow on India’s coming elections

Live Mint  

India’s Prime Minister Narendra Modi rode to power five years ago on his business friendly credentials and the promise of generating millions of jobs. Rescue Bid As the crisis at Jet Airways unfolded last year, Modi’s government reached out to the salt-to-software Tata Group to help rescue the airline, people familiar with the matter said in November, an effort that …

Discover Related