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, that the Indian skies may also soon be a part of this grand alliance, The Economic Times reported.

It is learned 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. 

The Jet Airways stock jumped nearly 4% on the news-break. 

Courtesy: The Economic Times

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