With Jet Airways being taken to bankruptcy court, it’s anyone’s guess as to how its resolution would pan out. Everyone’s fingers are crossed, as not only the survival of the airline is on the line, but, the fate of 20,000 plus employees rest on its successful resolution. A recent report by Moneycontrol seems to suggest that the first signs of a potential bid may be on the horizon.
US based TPG Capital, which is one of the world’s biggest Private Equity Investors, is said to be showing some interest in a potential bid for Jet Airways under the Insolvency & Bankruptcy Code. However, the PE Firm is reportedly interested in the deal only if Jet Privilege, which is the frequent flyer loyalty program of Jet Airways, is made party to the bidding process.
Jet Privilege has good financials, has seen a spike in membership and has profits to boast of, and, has been given a valuation of more than $ 1 billion last year. However, the only problem is that Jet Privilege is a separate entity from the debt infested airline, and is not part of the current insolvency process. It was incorporated in 2012 as a wholly owned subsidiary of Jet Airways, but was later separated as an independent entity in 2014, when Etihad Airways purchased a 50.01% stake in it for $ 150 million.
Another global PE giant, Apollo Global Management, which specialises in the acquisition of distressed assets, with $ 280 billion of assets under management, is also keen to strike an alliance along with other suitors, and has reached out to the Jet Employees Consortium, according to the same report.