Jet Privilege can actually get higher valuation than Jet Airways
Monetizing the Jet Privilege stake could prove to be a good move for Jet Airways considering frequent-flyer programmes command far better valuation multiples than the airline itself
Jet Airways (India) Ltd said it would monetize its 49% stake in Jet Privilege Pvt. Ltd, the frequent-flyer loyalty programme subsidiary. News reports suggest the associate company will be valued at ₹ 3,000-4,000 crore. While Jet Airways’ market capitalisation is about ₹ 3,000 crore, after adding its net debt, the airline’s enterprise value would be at ₹ 10,000 crore. That’s just about 0.4 times its consolidated revenue.