Etihad invests $150M in JetPrivilege — no impact on Indian cards

Etihad Airways bought a 24% stake in Jet Airways for $379 million and invested $150 million into JetPrivilege on April 24, 2013. This investment valued JetPrivilege as an asset worth fighting over, and it was the first foreign airline investment approved in India’s aviation sector. The $150 million investment was a significant cash infusion into the loyalty programme, which was wholly owned by the cash-strapped Jet Airways. The investment was seen as a lifeline for the programme, which was perpetually at risk of oblivion due to the financial struggles of its parent company. Our take: this development is irrelevant to Indian travel credit cards, as JetPrivilege is not a transfer partner for any of the known cards, and the investment does not change the valuation of any existing cards or loyalty programmes.