Jet Airways in talks with PE players for selling stake in Jetlite

Mumbai: Jet Airways is believed to be in preliminary talks with leading international private equity players like the Dubai-based Istithmar PSJC, US private equity firms Texas Pacific Group and Blackstone and Singapore''s investment holding company for offloading a minority stake in JetLite, its budget airline that was earlier Air Sahara.

Jet Airways, which is readying itself for a $400 million rights issue to fund its expansion plans, is said to be considering diluting up to 25 per cent in JetLite.

The airline is looking for capital to finance its international operations and aircraft acquisition.

JetLite expected to be profitable by October-November and is currently being rebranded by Jet Airways, which is integrating Air Sahara''s frequent flyer programme.

Jetlite is being repositioned as a "value carrier" — that is, an airline between a low-cost and a full-service carrier. To this end, JetLite has discontinued business class operations from June and re-configured its aircraft to all-economy seats.