Jet Airways may virtually merge with KLM-Air France

• Posted in Aviation
• on July 28, 2017
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Within 24 hours of KLM-Air France, Virgin Atlantic and Delta announcing a blockbuster global deal, ET NOW exclusively learns the Indian skies may also soon be a part of this grand alliance.

Sources tell ET Now that Jet Airways is in advanced talks with KLM-Air France for a strategic cooperation that could function as a virtual merger of the two airlines. Simultaneously, Jet is in talks with the US-based carrier Delta for an equity stake sale, and the talks are on to finalise the valuations.

The stake sale to Delta may follow the virtual merger with KLM-Air France

These two separate transactions will enable Jet to join the mega alliance announced on Thursday July 27 i.e. Delta buying a 10% stake in KLM-Air France, and KLM-Air France buying a 31% stake in Virgin Atlantic.

Sources say Jet and KLM-Air France are hoping to sign a “metal neutrality”pact next month that would entail flight scheduling, pricing and revenue management. As per a metal neutrality pact, the airlines concerned are indifferent to whose planes are used to carry passengers.

The Jet Airways stock jumped nearly 4% on the news-break.

Responding to ET Now, Jet Airways spokesperson said, “Jet Airways enjoys and continues to develop its codeshare partnerships with KLM Royal Dutch Airlines and Air France, over its European gateways in Amsterdam and Paris, to cater to growing traffic flows to/from Europe and North America.
As a policy, the airline does not comment on speculation.” Jim Otto Jersey

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