Aug. 07--MUMBAI -- Etihad Airways PJSC of United Arab Emirates on Wednesday said its proposed deal to pick up an equity stake in Jet Airways (India) Ltd, the second largest airline by passengers carried in India, would be completed "in the next seven or eight days" following final meetings.
Speaking at an aviation summit organised by the Centre for Asia Pacific Aviation (Capa) in Sydney, Etihad Airways chief executive officer James Hogan, said the Indian market is one of opportunity and is "fundamentally key for our development" as it is young and growing with market opportunities. He did say, however, that it still faces problems of high levels of regulation and airport infrastructure.
Capa website quoted Hogan saying that going into India was an "important decision" for the carrier.
On 29 July, the Foreign Investment Promotion Board (FIPB) allowed Jet Airways to sell a 24% stake in itself to Etihad Airways PJSC for $379 million, subject to conditions. Mumbai-based Jet Airways is set to become the first beneficiary of a policy change that allowed foreign airlines to invest in domestic ones.
"The carrier is acquiring a 24% stake in Jet Airways, subject to regulatory approval. Hogan is hopeful that the deal will be completed 'in the next seven or eight days' following final meetings," the website said.
Hogan is visiting Mumbai on 9 August.
The FIPB approval was subject to the Indian airline seeking the government's approval for any changes in its shareholder agreement with the Abu Dhabi airline and also in its shareholding pattern, and submitting a revised articles of association.
Jet and Etihad have already addressed some of the issues raised by the market regulator and others by effecting changes in their shareholder agreement and commercial cooperation agreement.
Once Jet submits this document, the deal will have to be approved by finance minister P. Chidambaram and subsequently the cabinet committee on economic affairs.
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