Jet Airways’ Stake In Jet Privilege To Attract Prospective Bidders, Says Document
As the Jet Airways crisis unravels at India’s bankruptcy courts, the airline’s stake in Jet Privilege Pvt. Ltd.—which is on an “accelerated growth path” according to its managing director—could well be an attraction for prospective bidders.
Jet Privilege, in which Etihad Airways PJSC is a majority shareholder, is working to build a “robust vertical-agnostic, multi-brand customer engagement platform”, its Managing Director Manish Dureja said on Monday.
Jet Privilege was set up to manage and develop JPMiles, a loyalty and rewards programme for Jet Airways. While the airline was grounded on April 17 for want of funds, the loyalty programme has remained a profitable venture.
The company’s profit after tax rose to Rs 129.82 crore in 2018 from Rs 121.64 crore in 2017, according to a document issued for prospective bidders of Jet Airways under the airline’s insolvency process.
“JetPrivilege is on an accelerated growth path to build a robust vertical-agnostic, multi-brand customer engagement platform that drives loyalty for brands, while accruing numerous meaningful and valuable benefits to members through its reward currency JPMiles,” Dureja said. The immediate focus is to consolidate growth in the travel space, including flights and hotel stays, he added.
According to the document mentioned above, the frequent flyer programme of Jet Privilege has been mentioned as among the factors why investors should buy into Jet Airways. It is a “large airline loyalty programme with 8.7 million members, 5 co-branded cards, 150-plus program partners, 2.5K-plus award tickets redeemed daily”, the document read.
Emphasising that Jet Privilege’s business operations remain secure and stable, Dureja said it continues to stay invested in its members and partners and is dedicated towards creating more value, opportunity and options.
“For us, it is business as usual because our journey to create a platform model began five years ago. We have a lens on the future and are moving towards that,” he said, when asked about how Jet Privilege’s business has been amid the Jet Airways crisis.
“With our air reward offering, Select Flights, powered by EaseMyTrip.com, members have the choice to earn and redeem their JPMiles to fly free across airlines worldwide, to any destination, on any flight and any seat in India or globally. Members can also book flights for their loved ones, family or friends, and earn JPMiles for their entire booking,” Dureja said.
According to him, there are close to 10 million Jet Privilege members transacting on various platforms whether it is for flying, staying, shopping, fuel or dine-in. “We currently have 200-plus partners across 10-plus categories,” he added.
In 2013, Etihad Airways acquired a 24 percent stake for Rs 2,058 crore in Jet Airways. Later, it invested Rs 859 crore in Jet Privilege for a 50.1 percent stake. The rest is held by the debt-ridden airline.