ED probes Jet Airways' frequent flyer loyalty programme deal with Etihad

Etihad acquired its share in Jet Privilege Private (JPPL) nearly six years ago in compliance with all regulatory requirements.

The Enforcement Directorate (ED) is investigating whether Jet Airways violated the foreign exchange regulations while signing a $150-million (over Rs 900 crore) deal with its strategic partner Etihad Airways in 2014 for a loyalty programme business.

The probe agency rounded up senior executives, including the airline’s chief financial officer, earlier this week to check the nuances of the more than five-year-old transaction under the provisions of the Foreign Exchange Management Act (Fema), sources in the know said.

In 2014, the Gulf carrier had picked up a 50.1 per cent stake in Jet’s frequent flyer programme. The board of Jet Privilege Private Limited