Jet Airways in talk with Delta Air Lines for stake sale
"Jet Airways right now is focusing on strengthening commercial ties but there have been talks of a stake sale to Delta as well. They could go this way or that", said one of the people, who is close to the development. A Jet Airways spokesperson said "it does not comment on speculation."
Delta Airlines got deepened relationship with Jet Airways, which could result in the US carrier picking up a stake in the Mumbai-based carrier.
Managements of Jet airways and Delta on an equity investment, sources said there had been exploratory discussions. Sources, however, said talks with Delta had not reached the stage of valuation and a formal due diligence had not yet been conducted.
Abu Dhabi's Etihad Airways owns a 24 per cent stake, on Jet Airways, which has adopted a network strategy independent of its investor. Commercial joint venture with Delta and Air France-KLM is fine tuning plans with Jet Airways management at present. A joint venture allows participating airlines to share revenue and profits on routes.
Jet Airways has made Paris, Amsterdam and London its European gateways and feeds traffic to its European partners and Delta, which coincided with Jet Airways growing ties with Air France-KLM and Delta. The two carriers have an extensive code share partnership and the Abu Dhabi- based airline has assisted Jet Airways in raising loans from banks in the Gulf.
Courtesy: Gulf News