Friday, July 28, 2017

Jet Airways may virtually merge with KLM-Air France

Within 24 hours of KLM-Air France, Virgin Atlantic and Delta announcing a blockbuster global deal, ET NOW exclusively learns the Indian skies may also soon be a part of this grand alliance.

Sources tell ET Now that Jet Airways is in advanced talks with KLM-Air France for a strategic cooperation that could function as a virtual merger of the two airlines. Simultaneously, Jet is in talks with the US-based carrier Delta for an equity stake sale, and the talks are on to finalise the valuations.

The stake sale to Delta may follow the virtual merger with KLM-Air France

These two separate transactions will enable Jet to join the mega alliance announced on Thursday July 27 i.e. Delta buying a 10% stake in KLM-Air France, and KLM-Air France buying a 31% stake in Virgin Atlantic.

Sources say Jet and KLM-Air France are hoping to sign a "metal neutrality" pact next month that would entail flight scheduling, pricing and revenue management. As per a metal neutrality pact, the airlines concerned are indifferent to whose planes are used to carry passengers.
28/07/17 Nayantara Rai/Economic Times
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