Etihad gets Bharat, Jet gets the world

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

Updated on: Apr 24, 2013, 20:58:01 IST

Hindustan Times | By Tushar Srivastava, New Delhi

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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.

ABOUT THE AUTHOR
Tushar Srivastava
Tushar was part of Hindustan Times’ nationwide network of correspondents that brings news, analysis and information to its readers. He no longer works with the Hindustan Times.

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