Naresh Goyal-led Jet Airways will have complete control over the airline post its deal with Abu Dhabi-based Etihad Airways according to the re-worked agreement and clarifications submitted to the Foreign Investment Promotion Board (FIPB) and the aviation ministry.
The apparent end to a long impasse over the terms of the deal sent Jet's shares up 17% to Rs. 396 on the BSE on Friday.
Etihad will have two out of the six functional directors on the airline's board. Four functional directors would be from Jet.
"The board has 12 directors six of whom are independent directors. Two directors in the 12-member board would mean 17% of the board strength," a government source said on Friday.
Among other changes are not relocating the airline's commercial office and place of business to Abu Dhabi. These would be based out of Mumbai. "All committees and boards, including the nominations committee, would be subservient to the airline board where Jet would have majority," an official said.
All foreign nationals associated with the functioning of Jet, besides the two Etihad-nominated board members, will have to get a security clearance from home ministry.
The deal would go to the Cabinet Committee on Investment if it is cleared by the FIPB on Monday.