Etihad gets Bharat, Jet gets the world | india | Hindustan Times
Today in New Delhi, India
Jan 24, 2017-Tuesday
-°C
New Delhi
  • Humidity
    -
  • Wind
    -

Etihad gets Bharat, Jet gets the world

india Updated: Apr 24, 2013 20:58 IST
Tushar Srivastava
Tushar Srivastava
Hindustan Times
Highlight Story

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.