Jet Airways raises Rs 250 cr from selling loyalty miles

Debt-ridden carrier Jet Airways has infused Rs 250 crores by selling redemption miles to its associate firm and is currently in discussion with lenders for short-term loans, Business Standard reports.

The report says the board of Jet Privilege Private Limited approved the sale on Tuesday. JPPL is the firm that manages Jet's loyalty programme.

In addition, promoter Naresh Goyal, who is negotiating a resolution plan with Etihad, has provided Rs 250 crores as interim funding.

The report also says that banks are likely to convert the airline's debt into equity and infuse fresh funds into the carrier, with SBI likely to lend Rs 200 crore as immediate assistance. A senior executive from the consortium of public sector banks, of which SBI is the leader, said the funds will help run the airline's operations.