September 24, 2018 / 11:48 AM / 8 months ago

TPG, Blackstone bid for Jet Airways' stake in loyalty program: CNBC TV18

FILE PHOTO: A Jet Airways plane is parked as other moves to runway at the Chhatrapati Shivaji International airport in Mumbai, India, February 14, 2018. REUTERS/Danish Siddiqui/File Photo

NEW DELHI (Reuters) - Private equity firms TPG Capital and Blackstone Group (BX.N) have submitted bids to buy beleaguered Indian carrier Jet Airways’ stake in its frequent flyer loyalty program, television channel CNBC TV18 reported on Monday, citing sources.

The airline, partly owned by Etihad Airways, has been facing financial difficulties and said last month it would inject funds and cut costs to turn around the business. It also said it plans to monetize some of its assets, including the JetPrivilege loyalty program, which has 8.5 million members.

The bids are likely to be between $350 million and $400 million, lower than what Jet expected, CNBC reported, adding that the airline expected to close the deal by the end of October. Jet is expecting bids from other investors and may retain a minority stake in the program, the TV channel said.

TPG, Blackstone and Jet Airways did not immediately respond to an email seeking comment.

Reporting by Aditi Shah; Editing by Subhranshu Sahu

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