Etihad-Jet Deal Clears All Approvals

Abu Dhabi’s national carrier Etihad Airways has finalised its $379 million deal with India’s Jet Airways after clearing all regulatory approvals.

The deal is the first foreign investment in an Indian airline since the country relaxed its foreign ownership rules for aviation.

Etihad said that all the regulatory approvals had been granted by November 12 while Etihad CEO James Hogan and director James Rigney have been appointed to Jet Airways’ board of directors.

“The infusion of foreign direct investment in the aviation sector will result in economies of scale, grow traffic at our airports, and create job opportunities,” said Naresh Goyal, chairman of Jet Airways.

“I am confident that this investment will greatly benefit all our stakeholders whilst significantly benefitting our customers who will now have access to a more expanded global network.”

Goyal also said that the partnership between the two airlines would increase connectivity for travellers to and from India.

“India is one of the largest and fastest-growing markets in the world and a key part of the Etihad Airways growth strategy,” said James Hogan, president and chief executive officer of Etihad Airways.

Hogan said that through this deal both Etihad and Jet will be strengthened. Following the purchase of an equity stake in Jet Airways, Etihad becomes eligible to 36,700 seats more every week in the lucrative Indian routes. The Indian airline, on the other hand, will receive some much-needed cash from the deal to clear off its debts.

“By linking our two networks and adding new flights, new routes and more code-share options, travel to, from and within India will become much easier,” he said.

Goyal and Hogan confirmed that the collaboration between the airlines would commence immediately with a view to delivering network and service benefits to customers as soon as possible.

Specific details will be released progressively, the Abu Dhabi carrier said.

Etihad bought a 24 per cent stake in the Indian carrier after facing a number of regulatory roadblocks from the Indian authorities. The deal had been delayed following concerns by Indian authorities on whether it will hurt Jet’s interests in the long term.