TPG Capital and Blackstone have submitted bids for Jet Airways’ loyalty programme -- Jet Privilege, sources told CNBC-TV18, adding, “Indigo Partners and Singapore’s GIC are likely to put in their bids later this week.”
Sources said TPG and Blackstone have bid between $350 million (Rs 2,540 crore) and $400 million (Rs 2,903 crore) for Jet Airways' 49 percent stake in Jet Privilege. The airline was expecting at least $100 million (Rs 725 crore) more.
Interestingly, Jet Airways current market capitalisation stands at Rs 2,476 crore making its loyalty programme alone more valuable than the airline itself.
Global consulting firm On Point has valued Jet Privilege at $1.13 billion (Rs 8,202 crore) and ranked it at the 31st position among the world’s top frequent flyer programmes. It is based on this report that Jet Airways was expecting at least $500 million (Rs 3,629 crore) bids for its 49 percent stake in Jet Privilege.
In 2014, Etihad paid Jet Airways $150 million for a 50.1 percent stake in the loyalty programme. However, since then, Jet Privilege has seen a threefold increase in its membership which currently stands at 85 lakh. It is this data that the private equity funds are after.
Airlines sell air-miles in bulk to commercial partners, which use the credits to attract customers and mine valuable data on their spending habits. Members then use the miles to buy anything from seat upgrades to vouchers for retail stores. An airline's loyalty program typically has several thousands of members and includes a raft of partners ranging from credit card companies, retail stores, hotels and travel industry brands.
24/09/18 CNBC TV18/moneycontrol.com
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Sources said TPG and Blackstone have bid between $350 million (Rs 2,540 crore) and $400 million (Rs 2,903 crore) for Jet Airways' 49 percent stake in Jet Privilege. The airline was expecting at least $100 million (Rs 725 crore) more.
Interestingly, Jet Airways current market capitalisation stands at Rs 2,476 crore making its loyalty programme alone more valuable than the airline itself.
Global consulting firm On Point has valued Jet Privilege at $1.13 billion (Rs 8,202 crore) and ranked it at the 31st position among the world’s top frequent flyer programmes. It is based on this report that Jet Airways was expecting at least $500 million (Rs 3,629 crore) bids for its 49 percent stake in Jet Privilege.
In 2014, Etihad paid Jet Airways $150 million for a 50.1 percent stake in the loyalty programme. However, since then, Jet Privilege has seen a threefold increase in its membership which currently stands at 85 lakh. It is this data that the private equity funds are after.
Airlines sell air-miles in bulk to commercial partners, which use the credits to attract customers and mine valuable data on their spending habits. Members then use the miles to buy anything from seat upgrades to vouchers for retail stores. An airline's loyalty program typically has several thousands of members and includes a raft of partners ranging from credit card companies, retail stores, hotels and travel industry brands.
24/09/18 CNBC TV18/moneycontrol.com
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