ED probes Jet Airways’ frequent flyer loyalty programme deal with Etihad

The Enforcement Directorate (ED) is investigating whether Jet Airways violated the foreign exchange regulations while signing a $150-million (over Rs 900 crore) deal with its strategic partner Etihad Airways in 2014 for a loyalty programme business.

The probe agency rounded up senior executives, including the airline’s chief financial officer, earlier this week to check the nuances of the more than five-year-old transaction under the provisions of the Foreign Exchange Management Act (Fema), sources in the know said.

In 2014, the Gulf carrier had picked up a 50.1 per cent stake in Jet’s frequent flyer programme. The board of Jet Privilege Private Limited (JPPL) had allotted 50.1 per cent shares to Etihad and the remainder to Jet.