Jet Airways, which is in the process of finalising a stake sale deal with Etihad Airways, plans to extend its code share agreement with the Abu Dhabi-based carrier to the Mumbai-Brussels-Newark route, sources said.
The move will help Jet Airways strengthen its subsidiary JetLite's performance.
Ahead of a crucial meeting next week, the Foreign Investment Promotion Board is scrutinising the commercial cooperation agreement between Jet Airways and Etihad Airways to ensure control is not passed on to the Abu Dhabi-based airline.
The stake-purchase agreement with Jet, second largest domestic passenger market share, will make Etihad the first foreign carrier to buy into an Indian airline.
The ministry of corporate affairs has raised questions on Etihad's rights to nominate three directors on the board and, despite being a minority shareholder in the company, decide on the vice-chairman.
The two parties have been in talks for a month and a half.
India, UAE yet to conclude bilateral investment promotion and protection agreement.
Abu Dhabi is no longer exclusive hub for Jet, Etihad won't recommend candidates for Jet management.
The Foreign Investment Promotion Board (FIPB) on Monday cleared Abu Dhabi-based Etihad Airlines buying 26 per cent stake in Jet Airways for Rs 2,058 crore (Rs 20.58 billion) with some conditions.
Agarwal submitted the express of interest through his family investment arm Volcan Investments before the close of the bid process on Saturday afternoon.
Etihad said it would not participate in the rights issue or infuse fresh funds under the current terms and conditions of the resolution plan
Sebi wanted Jet to convince it that the deal did not amount to joint control alongside promoter Naresh Goyal.
The Rs 2,058 crore (Rs 20.58 billion) deal between Jet Airways and Etihad Airways will benefit passengers, as increased competition will bring down air fares, aviation sector experts said.
Abu Dhabi has asked for an increase in seat capacity post Jet-Etihad deal. If Indian government agrees, more fliers will use Etihad than Air India. This will spell disaster for the country's national carrier.
Etihad is in talks to pick up a 24 percent stake in Jet.
Describing the over Rs 2,000 crore (Rs 20 billion) business proposal between Jet and Etihad airlines as a win-win deal, Civil Aviation Minister Ajit Singh on Thursday said it will be beneficial for flyers.
Etihad has been in talks for a 24 per cent equity stake in Jet, valued at around $300 million, ever since India relaxed ownership rules and allowed foreign airlines to buy up to 49 per cent in local carriers.
Manchester City announced a hugely lucrative naming rights deal with Etihad Airways on Friday which will see their City of Manchester Stadium immediately renamed the Etihad Stadium.
Jet Airways on Friday said its 24 per cent stake sale to the gulf carrier Etihad will bring down its debt to $1.5 billion from the current $2.1 billion.
Al-Nahayan wants govt assurance on protection of its foray, meets Anand Sharma.
Sheikh Hamed bin Zayed al-Nahayan, speaking on the sidelines of a defence exhibition in the UAE capital, said officials would meet Indian Trade Minister Anand Sharma to discuss the deal.
Jet Aiways had almost signed the deal with Etihad when the new leaked and the stock price of the former shot up, causing the Abu Dhabi carrier to reconsider.
The deal will improve debt-equity to a manageable level of 3.8 and support its share price, thereby lessening the pain for shareholders.
The airline notification to an exchange does not name the shareholder. It said the fund-raising would be subject to regulatory and corporate approvals.
Total revenue dropped to Rs 5,406 crore in the first quarter of the current financial year from Rs 5,508 crore in the same period a year ago
Abu Dhabi-based Etihad Airways is looking to expand its operations in India as the airline continues on its growth plan aiming to reach 100 destinations by 2020 from its current 65, the company's chief executive has said.
The airline's pricing strategy and capacity show it is targeting leisure travellers and corporate clients, rather than blue-collar workers migrating to Abu Dhabi.
Making India a pivot of its growth, UAE's national airline Etihad Airways will launch new flights to Kochi and Thiruvananthapuram, as its two new destinations, and introduce three new flights to Delhi.
Kingfisher is in discussion with various investors, including Etihad, for equity investments in the company, but matters are merely at negotiation stages, it said in a statement to the stock exchange.
The Home Ministry has conveyed to the Department of Economic Affairs (DEA) that it has not given security clearance to the Abu Dhabi-based Etihad Airways' proposal to buy a 24 per cent stake in Jet Airways.
Extending its previous day's rally, shares of the company opened on a strong note and further gained 8.78 per cent to Rs 581.85 on the BSE.
The Abu Dhabi-based airline is busy raising its brand recall, to catch up with Emirates.
Naresh Goyal-led Jet has also changed the shareholders agreement and amended the investment agreement and the articles of association, as suggested by the Foreign Investment Promotion Board, headed by DEA Secretary Arvind Mayaram, official sources said.
The apex court issued notices to the Centre, ministries and departments concerned, Jet Airways and United Arab Emirate's Etihad Airways on the petition challenging the deal and sought their responses within four weeks.
Jet Airways remains the number one airline serving foreign routes.
With air traffic between India and the UAE on the rise, the Gulf state's national carrier Etihad Airways is on the move to start services to Indian cities of Bangalore, Chennai and Hyderabad.
Etihad has been in talks for a 24 per cent equity stake in Jet, valued at around $300 million, ever since India relaxed ownership rules and allowed foreign airlines to buy up to 49 per cent in local carriers.
Alleging that something was fishy in the Jet-Etihad deal, BJP today demanded that the Prime Minister's Office should come clean on the issue.
The New Delhi district authorities on Monday issued a show-cause notice to Etihad Airways for allegedly violating the Centre's guidelines for international passenger arrivals at the IGI airport here, amid concerns over the Omicron variant of coronavirus.
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