Etihad’s equity alliance is set to expand its reach into India as it finalised its acquisition of a 24% stake in Mumbai-based Jet Airways.
All necessary Indian regulatory approvals were obtained by November 12, giving the green light for Jet’s allocation of 27,263,372 equity shares to Etihad.
Chairman of Jet Airways Naresh Goyal highlighted the benefits of the deal for the Indian aviation sector.
“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,” he said. “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.”
The tie-up will also enhance connectivity for leisure and business travellers from both India and the world at large, he added.
Meanwhile, Etihad president and chief executive James Hogan underlined the importance of the Indian aviation market.
“India is one of the largest and fastest-growing markets in the world and a key part of the Etihad Airways growth strategy,” he said.
“Through this association, Etihad Airways and Jet Airways will both be strengthened, as will the economies of India and the UAE. 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.”
Under the deal, both Hogan and his fellow nominee director James Rigney have been appointed additional directors on the board of Jet Airways with immediate effect.
The collaboration will begin immediately with details of the network and service benefits that will be implemented under the deal to be revealed shortly.
