How the first FDI in aviation was achieved.
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.
Jet Airways remains the number one airline serving foreign routes.
On a day when service tax department detained another Kingfisher plane for default, the second in two days, the airline announced it was in discussions with Abu Dhabi-based Etihad Airways for a stake sale which could revive the troubled airline's fortune.
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.
Manchester United have lost 11 of their 27 league matches this campaign, two more than all of last season. The two previous seasons with 12 league losses (2013-14 and 2021-22) led to managerial changes.
Will be the first choice if Naresh Goyal decides to sell stake in future.
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 stake-purchase agreement with Jet, second largest domestic passenger market share, will make Etihad the first foreign carrier to buy into an Indian airline.
Jet's flights to Abu Dhabi could be used to carry passengers from India headed for the US and Europe.
Objections were being raised by senior Bharatiya Janata Party leader Jaswant Singh, Communist Party of India's Gurudas Dasgupta, Dinesh Trivedi (Trinamool Congress) and Janata Party chief Subramanian Swamy over the deal, each of whom had shot off separate letters to Prime Minister Manmohan Singh.
India, UAE yet to conclude bilateral investment promotion and protection agreement.
IMAGES from the Premier League matches played on Saturday
Etihad has high hopes from Jet Airways deal in which it bought out majority stake in 2013.
The two parties have been in talks for a month and a half.
The long-pending Jet-Etihad deal envisaging foreign investment of Rs 2,058 crore will come up before Foreign Investment Promotion Board (FIPB) for approval on July 29.
Jet and Etihad stand to benefit from cost savings and synergies in areas such as fleet acquisition, maintenance and training.
The proposal will now be considered by the Cabinet Committee on Economic Affairs.
Fresh troubles are brewing for Jet-Etihad deal.
The long-range planes will be delivered from early 2014.
Competition Commission has held on to its observation about Etihad gaining joint control in Jet Airways and "significant" rights to appoint directors with a 24% stake purchase, while rejecting a plea to "rectify" its order that approved the deal earlier this month.
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.
Sebi wanted Jet to convince it that the deal did not amount to joint control alongside promoter Naresh Goyal.
Jet-Etihad deal documents among those leaked: CBI
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.
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.
To sell five Boeing 777s, replacing these with cheaper aircraft
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.
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.
The deal will improve debt-equity to a manageable level of 3.8 and support its share price, thereby lessening the pain for shareholders.
Al-Nahayan wants govt assurance on protection of its foray, meets Anand Sharma.
The airline will utilise new Airbus A320s, scheduled for delivery this year, to accommodate much of the increased frequencies.
At the NSE, the stock zoomed up by 8 per cent to Rs 444.
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 airline has already decided to lease out an A330 to Etihad and plans to lease out two more this year.
The deal, involving Abu Dhabi carrier Etihad's purchase of 24 per cent stake in Naresh Goyal-led Jet Airways, was approved last month by the Competition Commission of India.
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.
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