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HindustanTimes Fri,26 Dec 2014

Aviation

Etihad gets Bharat, Jet gets the world
Tushar Srivastava, Hindustan Times
New Delhi, April 24, 2013
First Published: 20:55 IST(24/4/2013)
Last Updated: 20:58 IST(24/4/2013)

Beating rival Kingfisher in the race to get an Etihad stake, Jet has stitched up a sweetheart deal, say experts.

The Naresh Goyal-promoted airline can use the investment to cut its R12,000-crore debt burden, expand to dozens of interior towns and possibly steal the no-frills thunder from budget carrier IndiGo.

It can tank up flights in UAE with cheaper fuel as taxes are higher in India., while Etihad will get a foothold in a growing emergy market of 1.3 billion people as the two link 140 destinations. Etihad will give Jet access to a global market beyond the Gulf region.

A recent report by the Centre for Asia-Pacific Aviation said in   a report that "at a later stage Etihad's stake could be increased to 49%."

For the deal to go through, Jet would have to approach the Foreign Investment Promotion Board to change its shareholding pattern.


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