Jet Airways’ stake in frequent flyer scheme key for potential bidders

A 49.9% stake in Jet Privilege Pvt. Ltd (JPPL), the frequent-flyer loyalty programme of Jet Airways (India) Ltd, is likely to be the key attraction for those bidding for the grounded airline, which was referred to a bankruptcy court last month.

Lenders to Jet Airways expect an attractive valuation for JPPL, which has remained profitable for the past few years despite a cash crunch faced by Jet Airways that forced it to curtail flights for several months before halting operations in April, two people directly aware of the ongoing discussions said on the condition of anonymity.

Financial creditors, which includes banks, have claimed ₹10,231 crore, while 2,400 operational creditors have claimed ₹12,372 crore from Jet Airways.