Jet Airways Gets Rs 258 Crore From JetPrivilege
The fresh funding comes as a lifeline to the Naresh Goyal-promoted airline, which has been in financial turbulence amid losses.
Debt-ridden carrier Jet Airways Ltd. today said that it has received around Rs 258 crore from Jet Privilege, its customer loyalty programme, for advance ticket sale.
The fresh funding comes as a lifeline to the Naresh Goyal-promoted full service carrier, which has been in financial turbulence amid losses, caused by high jet fuel prices, rupee depreciation and inability to raise fares due to cut-throat competition.
The cash crunch has forced the airline to delay salaries to its employees, while the management had taken major cuts in their remunerations.
Jet Privilege, which has got millions of members, is majority owned by its equity partner Etihad Airways, which also owns 24 percent in the carrier. The rest of the equity is held by the airline.
"Jet Privilege concluded a prepaid ticket purchase agreement for $35 million with Jet Airways, under normal course of business," an airline spokesperson told PTI.
The customer loyalty programme regularly purchases these tickets to offer its members against redemption of miles hence this transaction is no different and is done under normal course of business between Jet Airways and JetPrivilege, the spokesperson said.
The Jet counter rallied over 11 percent to Rs 197.10, still more than 60 below its 52-week high, on the BSE whose benchmark Sensex tanked 800 points in trade today.