TPG Capital in talks to invest in Jet Airways

Talks are at an early stage, says sources

Private equity firm TPG Capital is considering investing in India’s Jet Airways Ltd. but is not close to finalising a deal, two sources with knowledge of the matter said, a plan that could raise money for the beleaguered airline.

The investment could be more than $100 million but discussions are at an early stage and the size of the stake and the investment are not clear yet, the sources said.

TPG declined to comment. Jet Airways did not respond to an email seeking comment.

Jet Airways told staff earlier this month it was running out of money, a source had told Reuters, but it has denied this and said it is confident of cutting costs and keeping its planes flying.

Days later, Jet Airways deferred reporting earnings and the airline’s shares fell to a three-year low, with analysts saying the company urgently needed to recapitalise.

₹8,150 crore debt

The airline, which is partly owned by Etihad Airways, had net debt of ₹81.5 billion ($1.16 billion) as of end-March.

The carrier has said it is meeting all its payments obligations to lenders and is also looking at ways to cut costs to create “a healthier and more resilient business.”