Jet hires M&A expert from Delta

Jet Airways has hired Piero Ceschia, a senior executive from Delta Air Lines, known for his expertise in mergers and acquisitions (M&A), ahead of a possible bid for Air India.

Ceschia, who served as vice-president (strategic alliances) in Delta, joined Jet Airways last week. Previously, he worked in senior finance and corporate strategy roles in Air France-KLM and Alitalia.

Ceschia’s expertise is in areas of mergers and acquisitions, capital market transactions and restructuring of distressed assets, according to his LinkedIn profile. He has been involved in fundraising, stake sale negotiations, airline partnerships, and business reorganisation in his stints at the two European airlines.

Jet Airways did not respond to a query on the hiring and on Ceschia’s role in the airline and described its interest in Air India as speculation. Air France-KLM offered no comments. Delta also did said it would not comment on industry rumour.

Ceschia is the second senior Delta Air Lines executive to join Jet Airways after Vinay Dube, who took charge as the chief executive officer of the airline in August last year.

On Sunday, Press Trust of India reported Jet Airways, Air France-KLM and Delta would bid for Air India.

According to a source, there have been discussions among Jet Airways and its partner airlines over Air India’s bid. Investment in the national carrier will allow Jet Airways and its partners to consolidate their presence in India, given Air India’s 13 per cent share in the domestic market and 16 per cent share on international routes.

But, no decision has been taken by Jet or its partners. A cooperation deal signed with Jet Airways last year has allowed Air France-KLM to cement its position in the country. The focus of the airlines has largely been towards making partnership work. Also the focus of the airlines has largely been on cost savings and debt reduction. Air India’s high debt and limited scope of synergies was also an area of concern and would weigh business decision, a source said.

Jet Airways, which is coowned by Etihad Airways, had roped in J P Morgan last year to raise funds for expansion and debt reduction. It held exploratory talks with Delta for a stake sale. As of December-end, Jet Airways had debts of ~84.30 billion.

Net profit for first nine months of 2017-18 was ~3.15 billion, a decline of 63 per cent because of no income from sale and lease of planes.

Ceschia is the second senior Delta Air Lines executive to join Jet Airways after Vinay Dube, who took charge as the chief executive officer of the airline in August last year